Texas Attorney General Ken Paxton: $1.6 Billion Settlement Update Reached With Opioid Manufacturer
AUSTIN (CBSDFW.COM/AP) – Generic opioid manufacturer Mallinckrodt (MNK), its subsidiaries and other affiliates have agreed to pay $1.6 billion into a trust as part of a settlement. Texas Attorney General Ken Paxton made the announcement regarding the global settlement framework on Monday, October 12 between MNK and state attorneys general and local subdivisions.
"This agreement is a significant step toward helping those victimized by one of the worst man-made epidemics in our state's history," said Attorney General Paxton. "My office has been aggressively working to hold opioid manufacturers accountable for their deceptive marketing of highly-addictive pain pills, which spurred an epidemic and left victims and families with unimaginable consequences. My office will continue to do everything it can to protect Texans and help our state heal from this crisis."
In a release Monday, Paxton said that "the trust will go toward abating the opioid crisis including valid claims related to MNK's role in the opioid crisis raised by non-governmental claimants."
According to the release, the agreement also places limits on marketing and makes sure that "systems are in place to prevent drug misuse."
Details how the trust will be administered are all still being negotiated.
MNK, based in Staines-Upon-Thames, England, was one of the highest-volume opioid producers in the U.S. at the height of the nation's prescription drug crisis, shipping 2.3 billion pills from 2006 to 2014, according to federal data.
Full Statement:
Attorney General Ken Paxton today announced an update to a global settlement framework agreement between state attorneys general, local subdivisions, and the opioid manufacturer Mallinckrodt (MNK), its subsidiaries, and other affiliates. Under the new settlement, MNK will pay $1.6 billion into a trust. MNK is currently the largest generic opioid manufacturer in the United States.
"This agreement is a significant step toward helping those victimized by one of the worst man-made epidemics in our state's history," said Attorney General Paxton. "My office has been aggressively working to hold opioid manufacturers accountable for their deceptive marketing of highly-addictive pain pills, which spurred an epidemic and left victims and families with unimaginable consequences. My office will continue to do everything it can to protect Texans and help our state heal from this crisis."
The trust will go toward abating the opioid crisis, including valid claims related to MNK's role in the opioid crisis raised by non-governmental claimants. MNK also agreed 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 are all still being negotiated.
