One of the major pharmaceutical companies accused of flooding America with generic, addictive painkillers is floating a plan to avoid paying over $1 billion as part of a national settlement for victims of the opioid epidemic.
Mallinckrodt Pharmaceuticals, which produced more than a third of the opioids in circulation from 2006 to 2012, is one of several companies that stood accused of ignoring free-wheeling drug sales, often known as pill mills, as it pursued profits.
In the face of over 3,000 lawsuits, the company filed for bankruptcy in October 2020. The move allowed it to forge an agreement with every state in the nation: $1.7 billion to make all the lawsuits go away, end future litigation, and admit no fault.
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Attorney General Jason Miyares speaks during an interview at his office in Richmond on May 9. A spokesperson for Miyares, Victoria LaCivita, said the office is reviewing the Mallinckrodt reorganization plan approved by the bankruptcy court and evaluating potential options for the states.
The Wall Street Journal reported last month that Mallinckrodt is exploring ways to wriggle out of its payment. So far, the company has paid $450 million of its $1.7 billion debt.
The Dublin-based company owes the state of Virginia a total of $21.1 million, according to the office of Attorney General Jason Miyares.
Filings with the Securities and Exchange Commission hint at the companys internal deliberations, which appear to have resulted from pressure by investors. The Wall Street Journal has reported that these are primarily two hedge funds that are seeking to recoup money they say is owed to them.
The Board is actively evaluating the Companys capital needs in light of its obligations under its opioid settlement and its long-term debt, the filing reads.
It is not clear whether a second bankruptcy proceeding will be accepted in court. But if accepted, it would likely pay out money from the struggling company to creditors first and victims of the opioid epidemic afterward. NPR has reported that the total sum withdrawn is around $1 billion.
A spokesperson for Miyares, Victoria LaCivita, said the office is reviewing the Mallinckrodt reorganization plan approved by the bankruptcy court and evaluating potential options for the states.
John Shinholser, co-founder of the McShin Foundation, listens as CEO Honesty Liller speaks during the community meeting time in the McShin chapel on March 8. Liller wants to see Mallinckrodt Pharmaceuticals held accountable. These funds would help families and our community heal from the pain these medications have caused, she said.
Honesty Liller, CEO of recovery nonprofit McShin, said the company should be held accountable. She said meeting families who have lost a loved one to opioids has been heartbreaking for many years.
You cant put a price on a life, but you can do what is right for your wrongs, Liller said. These funds would help families and our community heal from the pain these medications have caused.
In Virginia, much of the opioid settlement money is being managed by a newly formed state body, the Opioid Abatement Authority. The OAA is distributing the money from companies to Virginia localities that apply and show the agency that the funds will be used for abatement.
Some early projects have already been funded, such as a womens shelter in Washington County in Southwest Virginia. The company, which was approved $116,000 from the OAA, says it will be used to build a 54-bed shelter in downtown Abingdon.
Remember this? 17 archive photos of Regency Mall
05-27-1987: Regency Mall food court.
09-22-1983: Regency Mall
04-04-1976: Shoppers at newly-opened Regency Mall.
05-27-1987: Regency Food Park
10-02-1975 (cutline): The first two stores to open at Regency Square Shopping Center in western Henrico County yesterday were Sears, Roebuck and Co, and Thalhimer Brothers, Inc. Developer Leonard L. Farber said another 30 retailers will join the two department store when the center has its grand opening Oct. 15. When the center is comleted next year, it will have about 90 stores.
10-03-1987: Regency Mall food court
12-24-1990: Regency Mall holiday decorations.
11-23-1990: Aerial of Regency Square Mall.
02-16-1987: Renovation of Regency Square Mall was underway.
05-22-1987 (cutline): Regency Square officially opened its Food Park yesterday and it didn’t take customers long to sample the food of the 11 eateries that are clustered on the mall’s lower level between Miller & Rhoads and Sears, Roebuck and Co. The park, which can accomodate up to 450 diners, is the first phase of the Henrico County mall’s $5 million renovation set for completion in September.
10-15-1975: Inside of Regency Square Mall after grand opening.
10-02-1975: Regency Square Mall filled with shoppers after grand opening.
10-15-1975: Regency Mall
03-29-1975 (cutline): Most of the steel appears to be up at the new Regency Square shopping center in western Henrico County. The building farthest along toward completion at lower left of picture is Thalhimers’ department store. The 800,000-square-foot center will be the largest regional center in the area. It is scheduled to be completed this fall. The road at top of picture is Quioccasin Road.
07-26-1974: Ground breaking of Regency Mall.
07-26-1974: Ground breaking of Regency Mall.
07-05-1974 (cutline): Regency Sqaure, a $50 million project on 48 acres at the southwest corner of Parham and Quioccasin roads, will be the largest shipping center in the Richmond area with more than 100 stores.
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