Mallinckrodt PLC signed a definitive settlement agreement worth about $30 million to resolve opioid lawsuits with two Ohio counties.
The U.K.-based drugmaker said the settlement with Cuyahoga and Summit counties will fully resolve the so-called Track 1 cases against all Mallinckrodt entities that are scheduled to go to trial in October.
Mallinckrodt was ordered by a U.S. District Court judge in Ohio to stand trial in October — along with pharmaceutical companies Johnson & Johnson, Endo International PLC, Purdue Pharma LP, Allergan PLC and Teva Pharmaceutical Industries Ltd. — over allegations that their marketing practices fueled the U.S. opioid crisis, which kills about 200 Americans each day.
Under the agreement, Mallinckrodt will pay $24 million in cash and provide $6 million in generic medicine, including addiction treatment products. The company will also pay $500,000 in two years for the counties' time and expenses.
In addition, if a resolution of government-related opioid claims occurs, Mallinckrodt has agreed to pay the two counties an amount minus the payment they would receive under the current agreement.
The company noted in its Sept. 30 release that it will focus its efforts on achieving a global resolution of all opioid lawsuits.
