Opioid Drug Maker Mallinckrodt Files for U.S. Bankruptcy Protection | Investing News

Reuters

FILE PHOTO: Bottles of prescription painkillers Oxycodone Hydrochloride, 30mg pills, made by Mallinckrodt sit on a counter at a local pharmacy, in Provo, Utah, U.S., April 25, 2017. REUTERS/George Frey/File PhotoReuters

(Reuters) – Mallinckrodt filed for bankruptcy protection on Monday, saddled with lawsuits alleging it helped fuel the U.S. opioid epidemic.

Adding to its woes, the company in March also lost a court battle to avoid paying higher rebates to state Medicaid programs for its top-selling drug.

Mallinckrodt said on Monday it had agreed to pay $1.6 billion over several years to settle opioid-related litigation. About $450 million would be paid as part of its settlement once the company emerged from chapter 11 bankruptcy.

The company would then pay $200 million in the first and second year after its emergence from the bankruptcy, and $150 million subsequently through the seventh year.

Mallinckrodt had agreed to pay $260 million over

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Ruby Tuesday files bankruptcy. Here are options for struggling firms

Kirby Hamilton | Getty Images

For some small-business owners, watching their larger peers file for bankruptcy may do little to ease fears about their own financial solvency.

With the coronavirus pandemic continuing to take a toll on the economy, Ruby Tuesday has become the latest large restaurant chain to seek protection under the U.S. bankruptcy code. While many of its restaurants will close, others will remain open as the company restructures its business. Meanwhile, California Pizza Kitchen, which announced its bankruptcy filing in July, has now canceled its planned auction after no bidders came forward and is turning ownership over to its lenders, according to published reports.

While restaurants have taken a beating during the pandemic perhaps more so than some other industries due to earlier closures and reopening with limited capacity in most places, other businesses aren’t immune to the effects of the current economic downturn.

Of course, large

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