Mallinckrodt Released From ALS Drug Stock Suit Due to Bankruptcy

A securities class action alleging Mallinckrodt PLC and its top officers failed to disclose problems with a drug for amyotrophic lateral sclerosis won’t proceed against the company now that its bankruptcy plan is approved.

But the pension fund spearheading the suit will continue to pursue claims against the 10 individual defendants, according to a filing in the US District Court for the District of New Jersey. The court approved the pension fund’s voluntary dismissal of Mallinckrodt Wednesday.

• The pharmaceutical giant allegedly failed to disclose safety concerns about the injectable drug H.P. Acthar Gel, and accordingly overstated its viability as an ...