Mallinckrodt Gets Ch. 11 Stay Of Acthar Suits Extended

By Vince Sullivan (November 29, 2021, 6:46 PM EST) -- A Delaware bankruptcy judge agreed Monday with drugmaker Mallinckrodt PLC that more than a dozen lawsuits against the debtor relating to its marketing of Acthar gel products should be paused for an additional 90 days so that plan confirmation proceedings aren't derailed in the coming weeks.

U.S. Bankruptcy Judge John T. Dorsey issued the order granting the extension of a year-old injunction set to expire Tuesday to avoid devastating fallout that would endanger Mallinckrodt's restructuring efforts while it is seeking court approval of its proposed Chapter 11 plan.

Ireland-based Mallinckrodt and its affiliates filed for Chapter 11 in October 2020, with...

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