NASHVILLE, Tenn. (WATE) — Monday, Tennessee Attorney General Herbert H. Slatery III said that a global settlement framework agreement between 50 state attorney generals, local subdivisions, and the largest generic opioid manufacturer in the United States has been updated.
Attorney General Slatery announced that opioid manufacturer Mallinckrodt (MNK), its subsidiaries, and certain other affiliates will pay $1.6B into a trust.
The trust will go toward the fight against the opioid crisis and valid claims in MNK’s role in the crisis that’s raised by non-governmental claimants.
Here’s a breakdown/schedule of how MNK will be paying out the $1.6B
- $450 million upon emergence from bankruptcy
- $200 million annually on first and second anniversary of emergence from bankruptcy
- $150 million annually on third through seventh anniversaries of emergence from bankruptcy
MNK has agreed that its opioid business will be subject to stringent injunctive relief that, among other things, will prevent marketing and ensure systems are in place to prevent drug misuse, according to A.G. Slatery.
“This payment schedule improves the February deal by moving $150 million from the last payment to the first. Since the February settlement, MNK has taken on additional liability due to other legal issues and the impact of COVID-19. As a result, MNK is now putting the entire company into bankruptcy, which requires that the February agreement be renegotiated. Details about how much each state will receive, how the money will be distributed, and how the trust will be administered are all still being negotiated.“Tennessee Attorney General Herbert H. Slatery III
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