Mallinckrodt to pay DoJ $260M over allegations of Medicare drug rebate underpayments

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• Mallinckrodt (OTCPK:MNKKQ +4.2%) has agreed to pay the U.S. Department of Justice $260M to settle allegations it violated the False Claims Act.
• More specifically, DoJ alleges the company underpaid drug rebates for its Achtar gel and used a foundation to pay illegal co-pay subsidies violating kickback laws.
• Mallinckrodt (OTCPK:MNKKQ +4.2%) also entered into a five-year corporate integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General.
• In February, Mallinckrodt (OTCPK:MNKKQ +4.2%) received a Complete Response Letter for its application for the kidney ailment treatment terlipressin.