***Settlement Alert Update: Mallinckrodt plc
Securities Litigation***
8/2/2022 - On
August 2, 2022, United States District Judge Dabney L. Friedrich of the
District of Columbia granted final approval of the $65.75 Million
settlement. The Judgment entered by the Court is available here. In
approving the Settlement, Judge Friedrich found that the Lead Plaintiff,
the State Teachers Retirement System of Ohio (“STRS Ohio”), had
faithfully represented the Settlement Class and that STRS Ohio and Lead
Counsel, Barrack Rodos & Bacine (“BR&B”), had appropriately
entered into settlement discussions via a mediation of the case while
discovery was taking place and after filing a motion for class
certification. The Judge further found that negotiating this
substantial settlement while Mallinckrodt was in bankruptcy proceedings
was a considerable accomplishment. The Judge concluded that “in light
of the benefits to the Settlement Class, the complexity and expense of
further litigation, the risks of establishing liability and damages, and
the costs of continued litigation, said Settlement is, in all respects,
fair, reasonable, and adequate to the Settlement Class.”
The Court also approved the Plan of Allocation proposed by STRS Ohio
and BR&B, as described in the Notice provided to Settlement Class
members. The Court found that the Plan of Allocation is fair and
reasonable to the members of the Settlement Class, and directed that the
Plan of Allocation form the basis for calculating all proofs of claim
submitted by Settlement Class members. A copy of the Order Approving
the Plan of Allocation is available here. The Court also granted in full the motion filed by Lead Counsel for
attorneys’ fees and reimbursement of litigation expenses at the levels
identified in the Notice.
No Settlement Class member had submitted an objection either to the
Settlement, the Plan of Allocation, or the fee and expense application.
The information contained on this web page is only a summary of information
presented in more detail in the Notice of Class Action, Proposed Settlement,
Motion for Attorneys’ Fees and Expenses, and Settlement Hearing (the “Notice”),
which you can access by clicking here. Since this website is just a summary, you should
review the Notice for additional information.
If you are a Settlement Class
Member, your legal rights will be affected by this Settlement whether you act
or do not act.
Please read
the Notice carefully
IF
YOU PURCHASED OR OTHERWISE ACQUIRED MALLINCKRODT PLC COMMON STOCK DURING THE
PERIOD FROM OCTOBER 6, 2015 THROUGH NOVEMBER 6, 2017, INCLUSIVE (THE
“SETTLEMENT CLASS PERIOD”) AND WERE DAMAGED THEREBY, YOU MAY BE ENTITLED TO A
PAYMENT FROM A CLASS ACTION SETTLEMENT.
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YOUR
LEGAL RIGHTS AND OPTIONS IN THE
SETTLEMENT:
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ACTIONS
YOU MAY PURSUE
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EFFECT OF TAKING THIS ACTION
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SUBMIT A PROOF
OF CLAIM AND RELEASE FORM POSTMARKED NO LATER THAN OCTOBER 27, 2022.
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This is the only way to get a payment from
the Settlement. The Proof of Claim and Release Form is available here.
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EXCLUDE YOURSELF FROM THE CLASS BY
SUBMITTING A WRITTEN REQUEST FOR EXCLUSION POSTMARKED
NO LATER THAN JUNE 28, 2022.
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Get no payment from the Settlement. This is the only option that allows you to
ever be part of any other lawsuit against the Defendants and Released
Defendant Parties concerning the claims that were, or could have been,
asserted in this case. It is also the
only way for Class Members to remove themselves from the Class.
If
you are considering excluding yourself from the Class, please note that there
is a risk that new claims asserted against the Defendants may no longer be
timely and could be time-barred. See
page 10 of the Notice.
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OBJECT TO THE SETTLEMENT BY SUBMITTING
A WRITTEN OBJECTION POSTMARKED NO
LATER THAN JUNE 28, 2022.
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Write to the Court
and explain why you do not like the Settlement, the proposed Plan of
Allocation, and/or the request for attorneys’ fees and reimbursement of
expenses. In order to object, you
must remain a member of the Class, may not exclude yourself, and you will be
bound by the Court’s determinations.
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ATTEND THE HEARING ON AUGUST 2, 2022 AT
10:00 A.M., AND FILE A NOTICE OF INTENTION TO APPEAR SO THAT IT IS POSTMARKED NO LATER THAN JUNE 28, 2022.
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Ask to speak in Court about the fairness of
the Settlement, the proposed Plan of Allocation, or the request for
attorneys’ fees and reimbursement of expenses.
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DO NOTHING.
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Get no payment. Remain a Class Member. Give up your rights. Still be bound by the terms of the
Settlement.
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The Settlement Hearing
A hearing will be held on August 2, 2022 at 10:00 a.m.,
before the Honorable Dabney L. Friedrich at the United States District Court
for the District of Columbia, 333 Constitution Avenue, Courtroom 14, Washington
D.C. 20001. You do NOT need to attend the Settlement Hearing to
receive a distribution from the Net Settlement Fund.
What is this case
about?
Lead
Plaintiff alleged that the Defendants violated Section 10(b) and 20(a) of the
Securities Exchange Act of 1934. On
July 30, 2019, the Court sustained the claims asserted in the Complaint filed
by the Lead Plaintiff that Defendants violated the federal securities law by:
(1) on October 6, 2015, misrepresenting the portion of Acthar sales
attributable to Medicare and Medicaid; (2) in a Form 10-K filed on November 29,
2016, making false statements relating to a Federal Trade Commission
investigation; and (3) from January 19, 2017 through August 8, 2017, making a
series of false and misleading statements concerning Acthar sales and prospects,
including financial and Acthar-related guidance to the market.
Defendants
have denied the claims asserted against them in the Action and deny having
engaged in any wrongdoing or violation of law of any kind whatsoever. Defendants have agreed to the Settlement
solely to eliminate the burden and expense of continued litigation.
The Settlement Benefits
At
this time, it is not possible to make any determination as to how much any
individual Settlement Class member may receive from the Settlement.
Pursuant
to the Settlement, Defendants have agreed to a $65,750,000.00 Settlement. If
the Settlement is approved by the Court, the Net Settlement Fund (the Settlement
Fund less taxes, notice and administration costs, attorneys’ fees and other
litigation expenses that may be awarded by the Court) will be distributed to
Settlement Class Members who submit valid Proof of Claim and Release Forms in
accordance with the proposed Plan of Allocation.
The
Net Settlement Fund will not be distributed unless and until the Court has
approved the Settlement and a Plan of Allocation, and the time for any petition
for rehearing, appeal or review has expired.
Further Information:
This
website and the Notice (available here) summarize the Settlement. For more
details regarding this Settlement please reference the Stipulation and
Agreement of Settlement, or other documents filed in the case under the “Court
Documents” link on the left. You may also contact the Claims
Administrator or Lead Counsel for further information regarding this
Settlement:
Claims Administrator:
Mallinckrodt
PLC Securities Litigation
Claims
Administrator
c/o
A.B. Data
P.O.
Box 170707
Milwaukee,
WI 53217
Phone:
(877) 315-0590
www.MallinckrodtSecuritiesLitigation.com
Lead Counsel:
BARRACK,
RODOS & BACINE
Jeffrey
W. Golan
Jeffrey
B. Gittleman
3300
Two Commerce Square
2001
Market Street
Philadelphia,
PA 19103
JGolan@barrack.com
JGittleman@barrack.com