Mallinckrodt Bankruptcy Starts Fight Over Pausing Acthar Cases

Cigna Corp. unit Express Scripts Inc. is sparring with an Illinois city over whether Mallinckrodt Plc’s bankruptcy declaration two weeks ago should lead a federal judge in Chicago to halt price-gouging claims against the benefits manager in addition to those facing the drugmaker.

“This court,” not the bankruptcy court, “gets to decide how to proceed as to Express Scripts,” the city of Rockford says in a court filing. “It should reprimand Express Scripts for its willful disobedience” in canceling depositions “and order that discovery proceed on a fast track.”

But “Mallinckrodt is an indispensable party” that the case can’t meaningfully ...