Mallinckrodt PLC has gained wider support for its proposed $1.6 billion settlement of thousands of lawsuits that accuse the bankrupt drugmaker of helping fuel the opioid crisis, reaching agreement with more than a thousand U.S. counties, cities and tribes, WSJ Pro Bankruptcy reported. The proposed restructuring deal covers municipalities in dozens of states, among them Texas, West Virginia and Pennsylvania, according to papers filed Saturday in the U.S. Bankruptcy Court in Wilmington, Del., and builds on existing support from territories, state authorities and the holders of most of Mallinckrodt’s unsecured bond debt. The settlement of opioid litigation and the billions of dollars in potential damages is key to the company’s planned chapter 11 restructuring. Mallinckrodt Chief Transformation Officer Stephen Welch testified during a court hearing yesterday that the company is facing more than 3,000 opioid-related lawsuits. Welch has helped lead Mallinckrodt’s restructuring efforts. Mallinckrodt is also facing additional litigation related to its Acthar Gel drug used to treat lupus, multiple sclerosis and other ailments. Mallinckrodt officials yesterday argued to extend a legal shield freezing the Acthar lawsuits while it pursues its chapter 11 restructuring.
