Mallinckrodt Mulls Restructuring as a Major Opioid Trial Nears
- Advisers Latham & Watkins, AlixPartners hired to weigh options
- Mallinckrodt among companies facing Cleveland trial next month
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Facing more than 2,000 states, cities and counties that blame drug makers and distributors for an epidemic of addiction and tens of thousands of overdose deaths, Mallinckrodt Plc has hired restructuring advisers to help limit its potential legal liabilities.
Drugmakers such as Mallinckrodt, Purdue Pharma LP and others are facing claims that they downplayed the addictive risks of their opioid pills and failed to monitor patterns of misuse. With their potential liability running into the tens of billions of dollars, some have raised the possibility of bankruptcy as a way to contain a likely legal payout.