A lawsuit was filed on behalf of investors in Mallinckrodt plc (NYSE: MNK) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/10/2023 -- An investor, who purchased shares of Mallinckrodt plc (NYSE: MNK), filed a lawsuit in the U.S. y over alleged violations of Federal Securities Laws by Mallinckrodt plc.
Investors who purchased shares of Mallinckrodt plc (NYSE: MNK) have certain options and for certain investors are short and strict deadlines running. Deadline: September 5, 2023. Mallinckrodt plc (NYSE: MNK investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Ireland based Mallinckrodt plc develops, manufactures, markets, and distributes specialty pharmaceutical products and therapies in the United States, Europe, the Middle East, Africa, and internationally.
In October 2020, Mallinckrodt plc filed for Chapter 11 bankruptcy protection while agreeing to settle its alleged role in the U.S. national opioid crisis for approximately $1.7 billion (the "Opioid Settlement"). As part of its Chapter 11 exit plan, Mallinckrodt agreed to make nine payments over eight years to an opioid-victims compensation trust (the "Trust") for the Opioid Settlement. The Company made its first payment of $450 million to the Trust as it emerged from Chapter 11 bankruptcy protection in June 2022. The Company's next payment of $200 million was due to the Trust in June 2023.
Despite its ongoing financial obligations to the Trust for the Opioid Settlement, since emerging from Chapter 11 bankruptcy protection, Mallinckrodt has repeatedly assured investors of the Company's financial strength, including purported enhancements to its liquidity and balance sheet, as well as its overall prospects for continued financial stability and near- and long-term success.
On June 2, 2023, The Wall Street Journal reported that Mallinckrodt plc was again exploring bankruptcy as its next $200 million payment to the Trust for the Opioid Settlement came due.
On June 15, 2023, Mallinckrodt plc disclosed in a Securities and Exchange Commission ('SEC") filing that it had determined not to make interest payments on two bonds due that day and may need to file for bankruptcy.
On June 16, 2023, Mallinckrodt plc disclosed in an SEC filing that the Company and the Trust had agreed to extend the deadline for the Company's $200 million payment to the Trust for the Opioid Settlement from June 16, 2023 to June 23, 2023, while reiterating that the Company may need to file for bankruptcy.
Then, on June 23, 2023, Mallinckrodt plc disclosed in an SEC filing that the Company and the Trust had again agreed to extend the deadline for the Company's $200 million payment to the Trust from June 23, 2023 to June 30, 2023, while reiterating that the Company may still need to file for bankruptcy.
Shares of Mallinckrodt plc (NYSE: MNK) declined to $0.436 per share on July 21, 2023.
The plaintiff claims that between June 17, 2022 and June 14, 2023, the Defendants made false and/or misleading statements and/or failed to disclose that: Mallinckrodt had overstated its financial strength, including purported enhancements to its liquidity and balance sheet, following its emergence from Chapter 11 bankruptcy protection, that accordingly, the Company overstated its ability to timely make one or more payments to the Trust for the Opioid Settlement, that all the foregoing negatively impacted Mallinckrodt's ability and/or willingness to timely meet interest payment obligations on certain bonds, that as a result of all the foregoing, the Company was at an increased risk of having to again file for Chapter 11 bankruptcy protection, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Mallinckrodt plc (NYSE: MNK) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.