BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Mallinckrodt plc (“Mallinckrodt” or the “Company”) (NYSE: MNK) investors concerning the Company’s possible violations of federal securities laws.
In October 2020, Mallinckrodt filed for Chapter 11 bankruptcy protection while agreeing to settle its role in the U.S. opioid crisis by making nine payments equaling $1.7 billion over eight years to an opioid-victims compensation trust. In June 2022, the Company made its first payment as it emerged from Chapter 11 bankruptcy protection. The next payment of $200 million was due in June 2023.
On June 2, 2023, The Wall Street Journal reported that Mallinckrodt was considering bankruptcy again as its next payment due date approached. On this news, Mallinckrodt’s stock price fell $0.98, or 40%, to close at $1.47 per share on June 5, 2023, thereby injuring investors.
Then, on June 15, 2023, the Company disclosed that it had decided to not make interest payments on two bonds due that day and may need to file for bankruptcy. On this news, Mallinckrodt’s stock price fell $0.39, or 31%, to close at $0.87 per share on June 15, 2023.
Then, on June 16, 2023, the Company announced that it had extended the deadline for its $200 million payment from June 16, 2023 to June 23, 2023. However, on June 23, 2023, the Company disclosed that it had extended the deadline once more to June 30, 2023, while also reiterating the possible need to file for bankruptcy.
If you purchased Mallinckrodt securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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