CHICAGO — Illinois Attorney General Kwame Raoul announced an update to a global settlement agreement between state attorneys general, local subdivisions and opioid manufacturer Mallinckrodt, or MNK.
The new settlement requires MNK to pay $1.6 billion into a trust that will go toward fighting the opioid crisis. MNK is currently the largest generic opioid manufacturer in the United States.
“MNK selfishly and irresponsibly sacrificed the health and safety of Illinois residents for its own financial gain,” Raoul said.
Raoul also said he believes the settlement holds MNK accountable for deceptive marketing practices while ensuring the money goes towards the communities that have been affected the most.
MNK will be required to pay the settlement in three installments:
- $450 million upon emergence from bankruptcy
- $200 million annually on first and second anniversary of emergence from bankruptcy
- $150 million annually on third through seventh anniversaries of emergence from bankruptcy
MNK also agrees that its business will be subject to stringent injunctive relief that will prevent marketing and ensure systems are in place to prevent drug misuse and abuse.
Raoul added MNK to the ongoing lawsuit last year against opioid manufacturers and distributors alleging unfair and deceptive marketing practices. The lawsuit alleges MNK pushed for the use of more opioids at higher doses and for longer periods of time under the guise of pain treatment.
Raoul’s office has also filed a lawsuit against opioid manufacturer Purdue Pharma for carrying out misleading marketing campaigns.