Mallinckrodt to settle opioid claims for $1.6 billion, generic unit to file Chapter 11

By Saumya Joseph

(Reuters) – Drugmaker Mallinckrodt Plc said on Tuesday its specialty generic unit will file for bankruptcy protection as it agreed to settle opioid-related cases globally by paying $1.6 billion over eight years.

The settlement was reached with a court-appointed plaintiffs’ executive committee that represents thousands of plaintiffs in the multi-district opioid litigation.

The Wall Street Journal newspaper first reported the settlement and the chapter 11 filing for Mallinckrodt’s generic unit on Monday.

Since last year, the company has been working to separate its generics unit and has said it was considering several options.

(Reporting by Saumya Sibi Joseph in Bangaluru; editing by Arun Koyyur and Jason Neely)