Mallinckrodt Misstated Vigor as Opioid Payment Loomed, Suit Says

Mallinckrodt PLC misled investors about its financial strength and ability to make a $200 million payment to a trust for victims of the opioid crisis, shareholders alleged after the drugmaker said it had negotiated extensions and was considering bankruptcy.

Mallinckrodt’s stock price dropped 40% and 31% on June 5 and June 15, respectively, as news of the payment delays and possible second Chapter 11 filing came out, the investors said on behalf of a proposed class. They filed their complaint July 7 in the US District Court for the District of New Jersey.

The company previously filed for bankruptcy in ...