- Without admitting guilt in the U.S. government's investigation into potential illegal activity related to its manufacture and distribution of controlled substances, Mallinckrodt (NYSE:MNK +2.1%) agrees to pay $35M to settle all potential claims by the U.S. Drug Enforcement Administration (DEA) and U.S. Attorneys' Offices in Michigan and New York.
- The company says the settlement will have no material adverse effect on its financial condition, operations or cash flows since it had already created a reserve for the full amount.
- Mallinckrodt General Counsel Michael-Bryant Hicks says, "While Mallinckrodt disagreed with the U.S. government's allegations, we chose to resolve the legacy matter in order to eliminate the uncertainty, distraction and expense of litigation and to allow the company to focus on meeting the important needs of its patients and customers."