NASHVILLE, Tenn. (WJHL) — Tennessee Attorney General Herbert Slatery announced an update Monday to a settlement between 50 states and localities and opioid manufacturer Mallinckrodt Pharmaceuticals.
This comes after the company reached a settlement in February to pay $160 million in three payments.
Slatery said $150 million was moved from the last scheduled payment to the first.
According to the attorney general, the company will make payments based on the following schedule:
- $450 million upon emergence from bankruptcy;
- $200 million annually on first and second anniversary of emergence from bankruptcy; and
- $150 million annually on third through seventh anniversaries of emergence from bankruptcy.
The money will go into a trust that will go toward abating the opioid crisis, including valid claims by non-governmental claimants related to the company’s role in the crisis, according to Slatery.
“We are holding this company accountable to the fullest extent possible to ensure these substantial funds are quickly available to abate the opioid crisis in our communities,” Slatery said in a news release.
According to a report Monday by the Associated Press, Mallinckrodt is seeking Chapter 11 bankruptcy protection.
Slatery said negotiations are still underway on how much money each state will receive, how the money will be distributed, and how the trust will be administered.
According to Tennessee’s attorney general, Mallinckrodt is the largest generic opioid manufacturer in the United States.