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The Justice Department is investigating McKinsey & Company, the international consulting giant, for its role in helping drug companies maximize their sale of opioids. Since 2021, McKinsey has agreed to pay about $1 billion to settle investigations and lawsuits across the United States related to the firm’s work with opioid makers, principally Purdue Pharma, the maker of OxyContin. McKinsey recommended that Purdue “turbocharge” its sales of the drug in the midst of the opioid crisis, which has killed hundreds of thousands of Americans. News of the criminal investigation was first reported by The Wall Street Journal on Wednesday. Last year another opioid maker, Mallinckrodt, said it received a grand jury subpoena from the same U.S. attorney’s office but did not mention any connection to McKinsey.

Persons: Endo, Mallinckrodt Organizations: McKinsey & Company, U.S, Western, of, McKinsey, Purdue Pharma, Purdue “ turbocharge, Wall, The New York Times Locations: Massachusetts, of Virginia, Washington, United States

☆ Mallinckrodt Avoids $40 Million SEC Fine in Medicaid Overcharge Case
▼ + stars: | 2023-12-02 | by ( David Smagalla | ) www.wsj.com time to read: 1 min

Mallinckrodt didn’t admit or deny the SEC’s findings. Photo: Whitney Curtis/Associated PressThe U.S. Securities and Exchange Commission said Mallinckrodt failed to tell investors it had potentially overcharged Medicaid for its flagship drug, but the regulator waived a $40 million civil penalty partly because the pharmaceutical company agreed to hire a compliance consultant. The SEC said in an administrative proceeding Thursday that the Centers for Medicare and Medicaid Services informed Mallinckrodt as early as 2016 that the company was using an incorrect rebate rate for its sales of Acthar Gel, a drug used to treat several rare autoimmune diseases, which meant it was overcharging state Medicaid programs for the drug.

Persons: Mallinckrodt didn’t, Whitney Curtis, Mallinckrodt Organizations: Associated Press, U.S . Securities, Exchange Commission, SEC, Medicare, Services

☆ Drug retailer Rite Aid files for bankruptcy amid rising debt, opioid litigation
▼ + stars: | 2023-10-16 | by ( Abinaya V | ) www.reuters.com time to read: +2 min

A woman shops inside a Rite Aid store underneath a DeepCam security camera in New York City, New York, U.S., June 25, 2020. Rite Aid, which began as a thrift shop in 1962, became the third largest U.S. chain of drugstores in less than two decades with more than 2,000 retail stores in 17 states. Rite Aid had a total debt of $8.60 billion as of June 3, according to a filing with the U.S. Bankruptcy Court for the District of New Jersey, some of which is due in 2025. It said it will transfer employees at underperforming stores that would be closed to other locations where possible. Rite Aid joins several companies, including Mallinckrodt, that have filed for bankruptcy due to lawsuits over the U.S. opioid crisis.

Persons: Lucas Jackson, Jeffrey Stein, Elizabeth Burr, Leroy Leo, Abinaya Vijayaraghavan, Mariam Sunny, Simon Cameron, Moore, Arun Koyyur Organizations: REUTERS, Rite, U.S, Bankruptcy, District of, Aid, Thomson Locations: New York City , New York, U.S, United States, District of New Jersey, Bengaluru

Rite Aid, one of the largest U.S. pharmacy retailers, stumbled under its high debt, revenue declines, increased competition, and opioid litigation, according to its court filings. Founded in 1962, Rite Aid employs 45,000 people at more than 2,000 retail stores in 17 states, and will remain open for business during the bankruptcy. Rite Aid, which has denied wrongdoing, said it hopes to reach an "equitable" settlement of opioid litigation in bankruptcy. A woman shops inside a Rite Aid store underneath a DeepCam security camera in New York City, New York, U.S., June 25, 2020. Rite Aid closed 200 stores before its bankruptcy, and it expects to close more as its Chapter 11 case proceeds.

Persons: Lucas Jackson, McKesson, Jeffrey Stein, Elizabeth Burr, Leroy Leo, Abinaya Vijayaraghavan, Mariam Sunny, Arun Koyyur, Marguerita Choy, Bill Berkrot Organizations: Rite Aid, Rite, Endo International, REUTERS, Bankruptcy, District of, MedImpact Healthcare Systems, Elixir ., Rite Aid . Rite, Aid, Thomson Locations: U.S, New York City , New York, District of New Jersey, Bengaluru

☆ Court OKs Mallinckrodt restructuring, $1 billion cut to opioid settlement
▼ + stars: | 2023-10-10 | by ( Dietrich Knauth | ) www.reuters.com time to read: +4 min

Despite the previous bankruptcy settlement that resolved those litigation threats and cut $1.5 billion in debt, Mallinckrodt quickly found itself in financial trouble again due to declining sales for its key branded drugs, including Acthar Gel. As part of its previous bankruptcy, Mallinckrodt, which denied wrongdoing, agreed to pay $1.7 billion to settle about 3,000 lawsuits alleging it used deceptive marketing tactics to boost opioid sales. Unlike the opioid settlement, Mallinckrodt intends to pay the full amount due under the Acthar settlement after its second bankruptcy. Dorsey overruled an objection filed by shareholder Alta Fundamental Advisers, which had argued that Mallinckrodt improperly rushed into a second bankruptcy at the expense of equity owners. The reorganized company has a total enterprise value of about $2.95 billion, according to Mallinckrodt's financial advisor Guggenheim Securities.

Persons: Hydrocodine, Mallinckrodt, George Frey, John Dorsey, Siggi Olafsson, Mallinckrodt's, Dorsey, Dietrich Knauth, Alexia Garamfalvi, Bill Berkrot, Richard Chang Organizations: REUTERS, Tuesday, Acthar, Deerfield Partners, JPMorgan Investment Management, Fundamental Advisers, Securities, Thomson Locations: Provo , Utah, U.S, Ireland, Wilmington , Delaware

☆ Bankrupt drugmaker Mallinckrodt considers sale of opioid business - WSJ
▼ + stars: | 2023-09-19 | by ( ) www.reuters.com time to read: +2 min

Bottles of prescription painkillers Oxycodone Hydrochloride, 30mg pills, made by Mallinckrodt sit on a counter at a local pharmacy, in Provo, Utah, U.S., April 25, 2017. REUTERS/George Frey/File Photo Acquire Licensing RightsSept 18 (Reuters) - Bankrupt drugmaker Mallinckrodt is in talks with major investors about selling some or all of its business units, which could lead to its exit from the opioid business, the Wall Street Journal reported on Monday, citing people familiar with the discussions. Some investors, poised to take control through the company's ongoing bankruptcy proceedings, are suggesting Mallinckrodt break up its business units, the report said. Mallinckrodt did not immediately respond to a Reuters request for comment. Reporting by Akanksha Khushi and Jyoti Narayan in Bengaluru; Editing by Janane VenkatramanOur Standards: The Thomson Reuters Trust Principles.

Persons: Mallinckrodt, George Frey, Akanksha Khushi, Jyoti Narayan, Janane Organizations: REUTERS, Wall Street, Securities and Exchange Commission, Attorney's, Western, of, U.S . Drug, Administration, Thomson Locations: Provo , Utah, U.S, Ireland, United States, of Virginia, Bengaluru

☆ Rite Aid stock is experiencing extreme turbulence: Here’s why
▼ + stars: | 2023-08-28 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +1 min

New York CNN —Shares of Rite Aid were slightly lower Monday after soaring more than 20% higher in morning trading. The steep swings come after Rite Aid saw its price of shares tumble Friday amid reports that the drug store chain was preparing to file for bankruptcy. Shares of Rite Aid (RAD) are down more than 91% since this time last year. Friday’s plunge came after The Wall Street Journal and Bloomberg reported that Rite Aid was preparing to file for Chapter 11 bankruptcy. Rite Aid is currently about $3.3 billion in debt and has been embroiled in a legal battle for allegedly filling unlawful opioid prescriptions.

Organizations: New, New York CNN, Rite Aid, Aid, Street Journal, Bloomberg, Justice, CNN, Purdue, Endo Pharmaceuticals, Department of Health, Human Services Locations: New York, Philadelphia, United States

☆ Mallinckrodt second bankruptcy would cut $1 billion from opioid settlement
▼ + stars: | 2023-08-23 | by ( ) www.reuters.com time to read: +2 min

The agreement announced Wednesday would reduce Mallinckrodt's debt by about $1.9 billion and cancel existing equity shares. The new deal would leave opioid creditors with $1 billion less than the $1.7 billion settlement that Mallinckrodt agreed to pay as part of its 2022 exit from the company's earlier bankruptcy. Mallinckrodt failed to make a $200 million payment to the opioid trust due in June, prompting the company to launch a negotiation with its stakeholders. Mallinckrodt said that its current level of creditor support should allow the company to complete its second bankruptcy by the end of 2023. Drug manufacturers, drug distributors and pharmacy chains have agreed to pay more than $50 billion in settlements to resolve lawsuits related to the U.S. opioid crisis.

Persons: Hydrocodine, Mallinckrodt, George Frey, Siggi Olafsson, Pratik Jain, Mariam Sunny, Khushi, Dietrich Knauth, Maju Samuel, Shinjini Ganguli, Alexia Garamfalvi Organizations: REUTERS, Thomson Locations: Provo , Utah, U.S, Ireland, Bengaluru, New York

☆ Opioid Maker’s Bankruptcy Plan Would Cut Payments to Victims by $1 Billion
▼ + stars: | 2023-08-23 | by ( Rebecca Robbins | More About Rebecca Robbins | ) www.nytimes.com time to read: +1 min

A major opioid manufacturer that had promised to pay $1.7 billion as compensation over its role in the opioid crisis disclosed on Wednesday that it had reached an agreement with its creditors to reduce the settlement payments by $1 billion. The funds had been earmarked for addiction victims to rebuild their lives and for governments to pay for priorities like drugs to reverse opioid overdoses. In a regulatory filing on Wednesday, Mallinckrodt disclosed that it had reached a plan to file for bankruptcy for the second time in three years. The plan to cancel a majority of the outstanding payments was devised with backing from hedge funds that would control the company under a second bankruptcy. The funds had lent money to Mallinckrodt and were in a position to force the company to prioritize paying back its lenders over compensating victims.

Persons: Mallinckrodt Organizations: Mallinckrodt Pharmaceuticals

☆ Opioids expose unhealthy bankruptcy addictions
▼ + stars: | 2023-08-11 | by ( Robert Cyran | ) www.reuters.com time to read: +6 min

Between 2006 and 2014, it manufactured roughly 30 billion opioid pills. Its attempt to climb out of bankruptcy has been stalled multiple times, most recently on Thursday by the U.S. Supreme Court. Mallinckrodt agreed to a $260 million settlement last year and quarterly revenue from Acthar has tumbled 70% since 2019. If not, it will be up to elected officials to end such unhealthy bankruptcy addictions. As part of that settlement, Mallinckrodt agreed to pay $1.7 billion over eight years to settle opioid claims.

Persons: Johnson, Mark Trudeau, Sackler, Mallinckrodt, It’s, haven’t, Jeffrey Goldfarb, Sharon Lam Organizations: Reuters, Mallinckrodt Pharmaceuticals, Johnson, CVS Health, Purdue Pharma, U.S, Supreme, Department of Justice, Specialty Brands, Point, Purdue, Purdue Pharma’s, DOJ, Biden Administration, Thomson Locations: American, Delaware, Acthar

☆ Drugmaker Mallinckrodt in talks with hedge funds to avoid opioid settlements, Wall Street Journal reports
▼ + stars: | 2023-07-26 | by ( ) www.reuters.com time to read: +1 min

Law Firms Mallinckrodt and Mallinckrodt FollowJuly 26 (Reuters) - Drugmaker Mallinckrodt (MNK.A) is talking to hedge funds about filing for bankruptcy and avoiding payments intended to help people addicted to opioids, the Wall Street Journal reported on Wednesday. Mallinckrodt, which is one of the largest manufacturers for opiods, had filed for bankruptcy protection nearly three years ago. It reached a $1.7 billion nationwide settlement as part of its bankruptcy reorganization plan and emerged from Chapter 11 last year. The company in June said it was considering a second bankruptcy filing and other options after its lenders raised concerns over the $200 million payment related to opioid-related litigation. Reporting by Sriparna Roy in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

Persons: Mallinckrodt, Sriparna Roy, Devika Organizations: Wall Street, Silver Point, Thomson Locations: Greenwich, Bengaluru

☆ Drugmaker Mallinckrodt may file for bankruptcy again, Wall Street Journal reports
▼ + stars: | 2023-06-03 | by ( ) www.reuters.com time to read: +1 min

June 2 (Reuters) - Pharmaceutical company Mallinckrodt Plc (MNK.A) is considering options including filing for bankruptcy again as a $200 million opioid settlement payment is due within weeks, the Wall Street Journal reported on Friday citing people familiar with the matter. The drugmaker is required to make the payment to an opioid-victims compensation trust by mid-June as part of its chapter 11 exit plan, the newspaper said. Mallinckrodt did not immediately respond to a Reuters request for comment outside office hours. The company filed for bankruptcy protection nearly three years ago. It reached a $1.7 billion nationwide settlement as part of its bankruptcy reorganization plan and emerged from Chapter 11 last year.

Persons: Mallinckrodt, Anirudh, Edwina Gibbs Organizations: Pharmaceutical, Mallinckrodt Plc, Wall Street, Thomson Locations: Bengaluru

The following are major companies that were accused of contributing to the crisis, and settlements or judgments involving those companies. Teva Pharmaceutical Industries Ltd (TEVA.TA)-In November, finalized claims nationwide for $4.25 billion, some of which is to be paid as a supply of the overdose-reversing drug naloxone. AbbVie Inc (ABBV.N)-In November, finalized a $2.37 billion nationwide settlement resolving claims against Allergan, a company it acquired in 2020. Endo International Plc (ENDPQ.PK)-Reached a $450 million settlement with more than 30 states as part of a bankruptcy filing in August. Mallinckrodt Plc (MNK.A)-Reached a $1.7 billion nationwide settlement as part of its bankruptcy reorganization plan, approved in February.

☆ Food Company Post Holdings Promotes Treasurer Matt Mainer to CFO Role
▼ + stars: | 2022-11-16 | by ( Kristin Broughton | ) www.wsj.com time to read: +2 min

St. Louis-based Post named its treasurer, Matt Mainer, as chief financial officer and promoted Jeff Zadoks, its current CFO, to operating chief, effective Dec. 1. Mr. Mainer has served as treasurer since joining the company in 2015, and will continue to hold the title after taking over as CFO. Post declined to make Mr. Mainer available for an interview. Photo: Post Holdings Mr. Zadoks has served as Post’s CFO since 2014. In his new role, Mr. Zadoks will work with the company’s business-line presidents on areas such as boosting revenue and cutting costs, said Post.

☆ Radioactive waste was found at an elementary school playground near a site where nuclear weapons were made in WWII
▼ + stars: | 2022-10-17 | by ( Kelsey Vlamis | ) www.businessinsider.com time to read: +4 min

A report found high levels of radioactive contamination at an elementary school in Missouri. Jana Elementary school is located near a creek that was contaminated in the 1940s and '50s. The report found radioactive contamination inside and outside the school building. Samples of soil, dust, and plant materials at the Jana Elementary School in the town of Florissant were collected in August for testing. Boston Chemical's investigation found several types of radioactive contamination were present at levels that far exceeded their expectations or acceptable levels.

☆ Opioid Crisis Fast Facts
▼ + stars: | 2017-09-18 | by ( Cnn Editorial Research | ) edition.cnn.com time to read: +15 min

March 29, 2017 - Trump signs an executive order calling for the establishment of the President’s Commission on Combating Drug Addiction and the Opioid Crisis. April 9, 2018 - The US surgeon general issues an advisory recommending that Americans carry the opioid overdose-reversing drug, naloxone. The settlement will be used to fund addiction research and help cities and counties with the opioid crisis. Cleveland County District Judge Thad Balkman orders Johnson & Johnson to pay $572 million for its role in the state’s opioid crisis. November 15, 2022 - Walmart agrees to the framework of a $3.1 billion settlement, which resolves allegations from multiple states’ attorneys general that the company failed to regulate opioid prescriptions contributing to the nationwide opioid crisis.

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