After years of squabbling, Mallinckrodt agreed to pay $260 million to settle accusations that it deliberately underpaid hundreds of millions of dollars in Medicaid rebates and also illegally used a charity to pay kickbacks aimed at encouraging Medicare patients to use a best-selling medicine.
The settlements were reached one month after a U.S. bankruptcy court approved a reorganization plan for the company, which faced numerous lawsuits over its alleged role in the opioid crisis, as well as the allegations brought by the Department of Justice concerning its Acthar Gel medicine.