Hedge Funds Seek to Cut Off $1 Billion Meant for Opioid Victims

Hedge funds are planning to cut off $1 billion intended to help opioid addiction victims, aiming to keep the money for themselves. Mallinckrodt, a major opioid manufacturer, agreed to pay $1.7 billion to settle lawsuits brought by state governments and opioid-addicted individuals.

July 27, 2023 . 11:20 AM

1 min read

Hedge funds are planning to cut off $1 billion intended to help victims of opioid addiction, aiming to keep the money for themselves.
Mallinckrodt, a major opioid manufacturer, agreed to pay $1.7 billion to settle lawsuits brought by state governments and opioid-addicted individuals.
The hedge funds want Mallinckrodt to file for bankruptcy and propose to write off $1 billion owed to addiction victims and governments.
They argue that the settlement funds should go to senior lenders, not to victims or state governments.
Mallinckrodt's potential bankruptcy filing would allow the hedge funds to become the company's new owners.