Mallinckrodt Reaches $46 Million Settlement in Securities Suit

Pharmaceutical giant Mallinckrodt Public Limited Co. and its top officers have agreed to pay $46 million to settle a securities class action alleging they misled investors about problems with a drug for amyotrophic lateral sclerosis.

The company’s “misstatements and omissions caused Mallinckrodt common stock to trade at artificially inflated prices,” according to a Wednesday brief filed with the proposed order for preliminary approval of the settlement in the US District Court for the District of New Jersey.

Canadian Elevator Industry Pension Trust Fund brought the class action on behalf of itself and representing Mallinckrodt investors between May 3, 2016, and ...