CONCORD, NH – New Hampshire has joined a global settlement agreement between attorneys general from 50 states and territories, local subdivisions, and the opioid manufacturer Mallinckrodt, its subsidiaries, and certain other affiliates. Mallinckrodt is currently the largest generic opioid manufacturer in the United States. The agreement is part of a bankruptcy filing by Mallinckrodt on October 12, 2020. Under the terms of the settlement, Mallinckrodt will pay $1.6 billion into a trust as described below.
In August, 2019, the State of New Hampshire filed a 68-page complaint in Merrimack County Superior Court against Mallinckrodt alleging that the company violated New Hampshire’s consumer protection laws by, among other acts, failing to disclose known and serious risks of addiction from its opioids, misrepresenting the abuse-deterrence qualities of its opioids and failing to report suspicious orders of its opioids. The complaint also alleges that Mallinckrodt’s actions created a public nuisance throughout the State.
The complaint further alleges that between 2006 and 2014, Mallinckrodt accounted for 21.81 percent of all opioid transactions in New Hampshire, which was the highest amount of any opioid manufacturer during this time. Additionally, during this timeframe, Mallinckrodt sold the equivalent of approximately 153.5 million 10 mg. opioid pills in New Hampshire, with a population of roughly 1.35 million people. That was enough Mallinckrodt opioids to provide each man, woman, and child in the state with 114 pills.
Under the terms of the settlement, Mallinckrodt will pay $1.6 billion in cash into a trust, with substantial portions of that amount going toward abating the opioid crisis.
“As New Hampshire continues to battle the opioid epidemic, we are taking strong action to hold bad actors accountable and demand the necessary financial relief that will help our State prevail
in this crisis,” said Governor Chris Sununu. “Today’s announcement of a major settlement with Mallinkrodt is another important step toward ending the irresponsible business practices that have devastated countless lives. I thank the Department of Justice for their work on this case.”
Mallinckrodt will pay the $1.6 billion according to the following schedule:
- $450 million upon emergence from bankruptcy;
- $200 million annually on first and second anniversary of emergence from bankruptcy; and
- $150 million annually on third through seventh anniversaries of emergence from bankruptcy.
Mallinckrodt also agrees that its opioid business will be subject to stringent injunctive relief that, among other things, will prevent marketing and ensure systems are in place to prevent drug misuse.
Details about how much each state will receive, how the money will be distributed, and how the trust will be administered will all be negotiated as part of the bankruptcy process.
However, the settlement could equate to millions of dollars for New Hampshire. And while the Attorney General’s office will have a say in deciding how that money is spent over the course of the payout, according to Pew Charitable Trusts, but the final word often goes to legislators.
