Mallinckrodt agrees to $260 million to settlement over Acthar Gel

Pharmaceutical company Mallinckrodt has agreed to pay $260 million to resolve allegations that it violated the False Claims Act by knowingly: 1. underpaying Medicaid rebates due for its drug HP Acthar Gel (repository corticotropin injection); and 2. using a foundation as a conduit to pay illegal co-pay subsidies in violation of the Anti-Kickback Statute for Acthar, the US Department of Justice announced on Wednesday.

In 2019 and 2020, respectively, the government filed separate complaints detailing these allegations. The settlement, which is based on Mallinckrodt’s financial condition, required final approval of the US Bankruptcy Court for the District of Delaware, which approved the settlement on March 2.

In early 2020, Mallinckrodt entered a $1.6 billion global settlement to resolve all opioid-related claims against the company.