Nebraska Attorney General Peterson announced Tuesday that a global settlement framework agreement has been reached between opioid manufacturer Mallinckrodt and state prosecutors.
Under the settlement, MNK will pay $1.6 billion into a trust that will be shared by the states, local subdivisions, and other affiliates.
MNK is currently the largest generic opioid manufacturer in the United States, but filed for bankruptcy Monday so it could restructure.
Peterson said states are continuing to hold both manufacturers and distributors accountable for the role their companies played in exacerbating the opioid crisis. “Ultimately, as we continue to negotiate with the other companies responsible, we will have a fund in the state of Nebraska that will allow us to be in a much better position to help address treatment needs for those in our state who are fighting an opioid addiction,” he said.
MNK will pay $1.6 billion of cash into a trust that will go toward abating the opioid crisis, including valid claims related to MNK’s role in the opioid crisis raised by non-governmental claimants, Peterson said.
MNK will pay the $1.6 billion according to the following schedule:
- $450 million upon emergence from bankruptcy;
- $200 million annually on first and second anniversary of emergence from bankruptcy; and
- $150 million annually on third through seventh anniversaries of emergence from bankruptcy.
MNK also agrees that its opioid business will be subject to stringent requirements that, among other things, will prevent marketing and ensure systems are in place to prevent drug misuse.
Details about how much each state will receive, how the money will be distributed, and how the trust will be administered are still being negotiated.
Last year, the Justice Department filed a separate suit against MNK, charging that the company knowingly paid illegal kickbacks as part of an elaborate scheme to make millions of dollars and stick the American taxpayer with the bill, CNN reported.
To obtain information about how to protect yourself as a consumer, file a consumer complaint, or report a scam, please visit the Nebraska Attorney General’s Office, Consumer Protection Division website at www.protectthegoodlife.nebraska.gov or call (800) 727-6432.