Facing more than 2,000 states, cities and counties that blame drug makers and distributors for an epidemic of addiction and tens of thousands of overdose deaths, Mallinckrodt Plc has hired restructuring advisers to help limit its potential legal liabilities, Bloomberg News reported. Drugmakers such as Mallinckrodt, Purdue Pharma LP and others are facing claims that they downplayed the addictive risks of their opioid pills and failed to monitor patterns of misuse. With their potential liability running into the tens of billions of dollars, some have raised the possibility of bankruptcy as a way to contain a likely legal payout. Ahead of the federal trial next month, Mallinckrodt is exploring options that could include a bankruptcy filing if its costs become unmanageable. The drugmaker has hired the law firm Latham & Watkins LLP and turnaround firm AlixPartners LLP to advise it. Mallinckrodt is burdened with $5 billion in debt, adding to the risk of a large legal judgment or settlement.
