Kansas To Get $6M From Mallinckrodt Over Opioid Crisis

Introduction

Mallinckrodt Pharmaceuticals plc will pay at least $6 million to Kansas as per Kansas' Attorney General's order over the company's role in the national opioid crisis.

The approval of the fund distribution was part of Mallinckrodt’s bankruptcy proceedings. Kansas would use the funds to address substance abuse and addiction. The AG's office of Kansas has now recovered nearly $200 million over the lawsuits related to illegal opioid manufacturing, marketing and distribution.

The AG said that he has worked hard to reach the settlement and make the drug manufacturing companies pay for their unlawful business practices, which led to addiction and human suffering. Kansas will receive the payment over the next eight years.

Earlier in February, the AG finalized and approved a $26 billion opioid settlement involving the nation’s three major pharmaceutical distributors and manufacturer Johnson & Johnson. It would clear the way for the states' and local governments' funds to treat and prevent opioid addiction.

Johnson & Johnson and the distributors would pay $35 million and $153 million, respectively, to Kansas and its local government. The AG even reached a settlement with McKinsey & Company in 2021 over its roles in the opioid epidemic, where the firm would pay $4.8 million to Kansas for drug treatment and addiction abatement.

The settlement would be distributed under the Kansas Fights Addiction Act, which focuses on addressing substance abuse and helping ensure addiction services are provided throughout the state. A grant review board has been created by the statute to execute the funding process of addiction treatment and abatement.

The AG's office has recovered more than $1 billion for Kansas consumers and taxpayers since 2011, which is far better than the previous administration.

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