$15 million slap on the wrist settles Mallinckrodt kickback claims

6 June 2019

UK-incorporated specialty pharma firm Mallinckrodt (NYSE: MNK) says it has “reached an agreement in principle” with the US Department of Justice (DOJ) to pay $15.4 million relating to allegations of kickbacks.

The revelation helped depress trading on Wednesday, with shares falling nearly 8% by the end of the day.

While not admitting fault, the firm says the agreement “should put to rest” the government claims, which relate to sales and marketing activities at Questcor, a US-based firm Mallinckrodt acquired for $5.6 billion in 2014.

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