: Mallinckrodt discloses grand jury subpoena, makes bankruptcy filing official

by | Aug 28, 2023 | Stock Market

Mallinckrodt PLC made it official Monday, with the Dublin, Ireland-based drugmaker filing for bankruptcy for the second time in three years after struggling to make settlement payments for its role in the opioid crisis. The company also disclosed that it received a grand jury subpoena last week from the U.S. Attorney’s Office for the Western District of Virginia.

Trading in Mallinckrodt’s stock
remained halted for news. The stock closed at a record low of 34 cents on Friday. The subpoena is for information from July 17, 2017, to the present relating to Mallinckrodt’s reporting of “suspicious orders” for controlled substances, chargebacks and other transactions, as well as communications between the company and the U.S. Drug Enforcement Administration. The company said it plans to cooperate with the U.S. attorney’s office investigation and to share information related to the operating injunction its specialty generics business has been operating under since October 2020. “The company believes that Specialty Generics is in compliance with its obligations through its industry-leading compliance program for controlled substances,” Mallinckrodt said in an 8-K filing with the U.S. Securities and Exchange Commission. “The company cannot predict the eventual scope, duration or outcome of the investigation at this time.” The bankruptcy filing, which the company indicated last week would be coming shortly, included the company, substantially all of its U.S. subsidiaries and certain international subsidiaries. The company and subsidiaries will continue to operate their business as “d …

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