Mallinckrodt Cleared to Settle Opioid Suits, Restructure (1)

Pharmaceutical company Mallinckrodt Plc won court approval of its bankruptcy exit plan, clearing the way for a settlement of thousands of lawsuits related to its opioid drugs.

U.S. Bankruptcy Judge John Dorsey said in a written opinion Thursday that he would approve the plan, which calls for handing control of the company to creditors and routing opioid litigation claims to a trust set aside for their settlement and payment. A trial over the plan began in November and ended last month.

In late 2020, Mallinckrodt became the third major opioid maker to file for bankruptcy after being swamped by ...