Shareholders are suing Mallinckrodt, alleging the struggling pharmaceutical company made false and misleading statements about its financial health that resulted in investor losses, the Wall Street Journal reported. The company and three executives named in the suit received a court summons on Monday ordering them to appear in court within 21 days. Continental General Insurance and Percy Rockdale, plaintiffs who bought Mallinckrodt shares both this year and last year, said in a class-action complaint filed Friday that the company overstated its financial standing. The lawsuit cited Mallinckrodt’s statements about alleged improvements to its liquidity and balance sheet as well as its ability to fulfill obligations under a $1.7 billion opioid-related settlement agreement with state and local governments. Mallinckrodt last month delayed a $200 million payment to the opioid settlement trust. The company also missed interest payments to its bondholders, warning that it may need to file for bankruptcy a second time.
