Attorney General Becerra: $1.6 Billion Global Settlement with Opioid Manufacturer Mallinckrodt Signals Progress in Drive for Accountability from Those Who Fueled Opioid Crisis

SACRAMENTO – Attorney General Xavier Becerra today announced a global settlement framework between state attorneys general, local subdivisions, and Mallinckrodt (MNK), its subsidiaries, and certain other affiliates. MNK is currently the largest generic opioid manufacturer in the United States. In the agreement, MNK agrees to pay $1.6 billion in cash to a trust that will cover the costs of opioid addiction treatment and related efforts, with the potential for increased payment to the trust. MNK also agrees that its future generic opioid business will be subject to stringent injunctive terms that, among other things, will prohibit marketing of its opioid products and ensure systems are in place to prevent the drugs from falling into the wrong hands.

“Nothing can undo the devastating loss and grief inflicted by the opioid epidemic upon victims and their families, but this settlement with Mallinckrodt is an important step in the process of healing our communities,” said Attorney General Becerra. “Our office has worked aggressively with our coalition partners to hold accountable bad actors who fueled this public health crisis. While today’s settlement is a step in the right direction, we’ll continue to work to bring more much-needed relief to families throughout California whose lives have been upended by the opioid crisis.”

Opioids are a family of drugs including prescription painkillers and illegal drugs like heroin. Nationwide, prescription and illegal opioids are the main cause of drug overdose deaths. According to the Centers for Disease Control and Prevention, opioids were involved in more than 47,600 overdose deaths in 2017. Between 1999 and 2017, more than 702,000 people died from a drug overdose.