Covidien Fails to Toss Claims in Mallinckrodt Spinoff Suit (1)

Medtronic Plc subsidiary Covidien must litigate most claims brought in a bankruptcy court lawsuit accusing the medical device company of unfairly profiting to the tune of billions of dollars from its 2013 spinoff of opioid manufacturer Mallinckrodt Plc.

The Chapter 11 trust set up for Mallinckrodt creditors can pursue billions of dollars in claims first brought in a 2022 suit against Covidien and aimed at recouping alleged fraudulent transfers that left all of Covidien’s potential opioid liability with Mallinckrodt, according to an opinion Wednesday by Judge Brendan Linehan Shannon of the US Bankruptcy Court for the District of Delaware. ...