Mallinckrodt

About Mallinckrodt

Mallinckrodt PLC filed for Chapter 11 bankruptcy for the second time in August 2023. The specialty pharmaceutical company had 5 billion in debt. Mallinckrodt faced opioid lawsuits, having been one of the largest manufacturers of generic opioids. The company also faced declining revenue from its Acthar Gel product. Mallinckrodt had emerged from its first bankruptcy in 2022 with approximately 1 billion in debt but could not sustain payments. The second bankruptcy eliminated additional debt. Mallinckrodt was one of several pharmaceutical companies forced into bankruptcy by opioid litigation, alongside Purdue Pharma and Endo International. The case illustrates how mass tort liability can exceed even large companies ability to pay.