Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Mallinckrodt PLC (“Mallinckrodt” or “the Company) (NASDAQ: MNK) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that held, purchased, or otherwise acquired Mallinckrodt securities from June 17, 2022 through June 14, 2023 (the “Class Period”). Investors who acquired Mallinckrodt securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is September 5, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Mallinckrodt securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST MALLINCKRODT PLC
In October 2020, Mallinckrodt filed for Chapter 11 bankruptcy protection while agreeing to settle its alleged role in the U.S. national opioid crisis for approximately $1.7 billion (the “Opioid Settlement”). As part of its Chapter 11 exit plan, Mallinckrodt agreed to make nine payments over eight years to an opioid-victims compensation trust (the “Trust”) for the Opioid Settlement. The Company made its first payment of $450 million to the Trust as it emerged from Chapter 11 bankruptcy protection in June 2022. The Company’s next payment of $200 million was due to the Trust in June 2023. Despite its ongoing financial obligations to the Trust for the Opioid Settlement, since emerging from Chapter 11 bankruptcy protection, Mallinckrodt has repeatedly assured investors of the Company’s financial strength, including purported enhancements to its liquidity and balance sheet, as well as its overall prospects for continued financial stability and near- and long-term success. The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Mallinckrodt had overstated its financial strength, including purported enhancements to its liquidity and balance sheet, following its emergence from Chapter 11 bankruptcy protection; (ii) accordingly, the Company overstated its ability to timely make one or more payments to the Trust for the Opioid Settlement; (iii) all the foregoing negatively impacted Mallinckrodt’s ability and/or willingness to timely meet interest payment obligations on certain bonds; (iv) as a result of all the foregoing, the Company was at an increased risk of having to again file for Chapter 11 bankruptcy protection; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times. On June 2, 2023, The Wall Street Journal reported that Mallinckrodt was again exploring bankruptcy as its next $200 million payment to the Trust for the Opioid Settlement came due. On this news, Mallinckrodt’s ordinary share price fell $0.98 per share, or 40%, to close at $1.47 per share on June 5, 2023, the next trading day. On June 15, 2023, Mallinckrodt disclosed in a Securities and Exchange Commission (‘SEC”) filing that it had determined not to make interest payments on two bonds due that day and may need to file for bankruptcy. On this news, Mallinckrodt’s ordinary share price fell $0.39 per share, or 30.95%, to close at $0.87 per share on June 15, 2023. On June 16, 2023, Mallinckrodt disclosed in an SEC filing that the Company and the Trust had agreed to extend the deadline for the Company’s $200 million payment to the Trust for the Opioid Settlement from June 16, 2023 to June 23, 2023, while reiterating that the Company may need to file for bankruptcy. Then, on June 23, 2023, Mallinckrodt disclosed in an SEC filing that the Company and the Trust had again agreed to extend the deadline for the Company’s $200 million payment to the Trust from June 23, 2023 to June 30, 2023, while reiterating that the Company may still need to file for bankruptcy.
ABOUT MALLINCKRODT PLC
What is Mallinckrodt PLC?
- Mallinckrodt PLC is a global specialty pharmaceutical company that focuses on the development, manufacturing, and distribution of specialty pharmaceutical products and medical imaging agents. The company operates in various therapeutic areas, including autoimmune and rare diseases, pain management, respiratory conditions, and central nervous system disorders.
What is Mallinckrodt PLC known for?
- Mallinckrodt PLC is known for its development and commercialization of branded and generic pharmaceutical products. They offer a wide range of medications and treatments, such as opioid pain medications, immunosuppressants, respiratory therapies, and diagnostic imaging agents used in medical imaging procedures.
- In addition to pharmaceuticals, Mallinckrodt also provides contract manufacturing services to other pharmaceutical companies. They have manufacturing facilities and operations in several countries around the world, enabling them to serve global markets.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those who suffered financial losses in their investments in Mallinckrodt during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire Class. The deadline for submitting such a request is September 5, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential Class members in the class action lawsuit against Mallinckrodt are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
ABOUT US
For more information as well as to join this case please contact Atara Twersky, Esq. at atara@twerskylawgroup.com. Atara is Principal at Twersky Law Group and of counsel at AF&T Law Firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries, listen to Atara ’s Pension and Investments Podcast with notable guests in the pension fund Industry that discusses various matters relating to investment portfolios. For more information on Atara and her legal work pertaining to shareholder protection click here.
