Mallinckrodt Plc filed for bankruptcy last year to resolve thousands of lawsuits accusing it of fueling the opioid epidemic, but as it aims to bring the process to a close, it must first address a completely different kind of claim, Reuters reported. The pharmaceutical company recently kicked off a multi-day hearing seeking approval of its proposed reorganization plan and underlying opioid litigation settlement, which creditors and government entities have largely signed off on. But now, in what one Mallinckrodt attorney called an “unconventional” approach to a chapter 11 plan confirmation process, the company will begin another hearing on Monday over two insurers’ claims that they have had to reimburse their customers at highly inflated prices for Mallinckrodt’s Acthar gel. The product, one of the company's main moneymakers, is used for treatment of infantile spasms and multiple sclerosis. The insurers, Humana Inc. and Attestor, allege that not only did Mallinckrodt engage in anti-competitive practices by inflating Acthar's prices before the bankruptcy in violation of antitrust laws, but that it has continued charging those high rates during the case. The insurers argue that since they have had to continue paying amounts they believe are illegal, they should be entitled to senior priority status in Mallinckrodt’s creditor payment structure.
