Bloomberg Law
Feb. 24, 2022, 8:33 PM

Mallinckrodt Gets Nod for $65.75 Million Deal With Shareholders

Daniel Gill
Daniel Gill

Mallinckrodt Plc won court approval of its $65.75 million settlement of securities fraud claims tied to revenue statements about the bankrupt drugmaker’s Acthar Gel.

Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware, who approved the deal Wednesday, ordered Mallinckrodt’s directors and officers insurance carriers to provide the settlement funds.

A group of Mallinkrodt shareholders alleged that CEO Mark Trudeau and former Chief Financial Officer Matthew Harbaugh made false statements about anticompetitive practices and government reimbursements for purchases of Acthar Gel, which treats infantile spasms.

The shareholders said the misrepresentations resulted in an artificial escalation ...

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