Shenk, et al. v. Mallinckrodt plc et al.

Mallinckrodt agreed to pay $67,75 million to settle a securities class action lawsuit accusing the Company of deceiving investors about sales in 2015-2017 years.

The original complaint alleged that the Company:

• on October 6, 2015, was misrepresenting the portion of Acthar sales attributable to Medicare and Medicaid;

• in a Form 10-K filed on November 29, 2016, was making false statements relating to a Federal Trade Commission investigation;

• from January 19, 2017, through August 8, 2017, was making a series of false and misleading statements concerning Acthar sales and prospects, including financial and Acthar-related guidance to the market.

After several years of court proceedings, Mallinckrodt agreed to settle with investors to avoid further litigation.