Mallinckrodt plc

Irish drug company Mallinckrodt plc is one of several major opioid manufacturers to file for Chapter 11 bankruptcy protection in the shadow of massive litigation.

According to Bloomberg, the Dublin-based corporation filed on Oct. 12 in Delaware "after getting creditors and claimants to agree on a restructuring plan that hands ownership to bondholders, wipes out shareholders, and sets aside $1.6 billion to resolve all opioid litigation. The filing also will help resolve a U.S. government probe into whether the company defrauded Medicaid by overcharging for Acthar Gel, its top-selling multiple sclerosis drug."

CreditRiskMonitor subscribers would have seen large bankruptcy potential, as the company had been at a FRISK® score of either "2" or "1" since the summer of 2019: 

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Mallinckrodt plc FRISK® Score

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