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MNK.US

id: 773

Mallinckrodt (MNK) Investor Settlement

Late claims are being considered for compensation, subject to approval.

$5,500,000

Cash Settlement

D. New Jersey

Court

3:23-cv-03662

Case number

06/17/2022

Class period Start

08/25/2023

Class period End

12/10/2025

Claim deadline

Mallinckrodt has reached a settlement with $MNKTQ investors to resolve claims that it misled them about its financial condition and ability to meet settlement obligations following its first bankruptcy.

Outline

After emerging from bankruptcy in June 2022, Mallinckrodt repeatedly assured investors that it was financially stable and capable of meeting its opioid settlement obligations. However, the company had already begun planning a second restructuring. On August 28, 2023, Mallinckrodt filed for a second bankruptcy, erasing all shareholder value. Soon, investors filed a lawsuit.

Timeline

June 16, 2022 – Mallinckrodt emerged from its first bankruptcy and resumed trading on the NYSE under $MNK.
June 2, 2023 – The Media reported that the company was considering another bankruptcy. $MNK dropped 40%.
June 15, 2023 – Mallinckrodt announced missed debt payments and a bankruptcy evaluation. Shares dropped 31%.
July 5, 2023 – Investors filed a class action lawsuit.
August 28, 2023 – Mallinckrodt filed for a second bankruptcy. $MNK was delisted, and shares became worthless.
May 28, 2025 – Mallinckrodt agreed to a settlement with investors.

Background

Mallinckrodt, a pharmaceutical company operating in the Specialty Brands and Specialty Generics segments, exited its first bankruptcy in June 2022 after agreeing to pay $1.725B in opioid-related settlements and $260M in the Acthar settlement.

Mallinckrodt’s leadership repeatedly assured investors that it had sufficient liquidity, a strong financial foundation, and the ability to meet its obligations. The company reaffirmed guidance and even suggested it might prepay part of its opioid settlement.

However, internal documents and later filings revealed that Mallinckrodt was already insolvent and had hired restructuring advisors as early as October 2022. Despite publicly promoting financial strength, the company missed its second $200M opioid payment in mid-2023, while also approving executive bonuses. 

Following this, on July 5, 2023, investors filed a lawsuit alleging the company misled them about its financial health and the ability to meet its post-bankruptcy commitments.

In August 2023, Mallinckrodt filed for a second bankruptcy, wiping out all remaining public shareholders.

What Can Investors Expect Now?

Mallinckrodt has reached a settlement with $MNKTQ investors to resolve claims that it misled them about its financial condition and ability to meet settlement obligations following its first bankruptcy.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type

US Securities Class Action

Case Status

Accepting Late Claims

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.53

Filing date

07/05/2023

Lead Plaintiff Deadline

09/05/2023

Plaintiffs

Continental General Insurance Company

Attorneys

DJS Law Group (Eastchester, NY), Pomerantz LLP (New York, NY)

Defendants

Sigurdur Olafsson, Bryan M. Reasons, Paul Bisaro

Judge

Hon. Zahid N. Quraishi

Administrator

Angeion

Court hearing date

12/03/2025

Exclusion deadline

11/12/2025

Objection deadline

11/12/2025

Attorney fee

$21,833,333

Trades matching type

FIFO

Frequently Asked Questions

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