Pharmaceutical company Mallinckrodt expects to pay $15 million to settle DOJ drug bribing probe

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Shares of pharmaceutical company Mallinckrodt seesawed after announcing a tentative deal with the DOJ to settle a drug bribery probe.

Mallinckrodt said it expects to pay $15.4 million to the DOJ to settle a drug bribery case.

HP Acthar made by Mallinckrodt Pharmaceuticals is an anti-inflamatory medicine used by multiple sclerosis patients.seesawed Wednesday after it announced a tentative deal with the U.S. Justice Department to settle a drug bribery probe into Questcor Pharmaceuticals, which it acquired in 2014. The company's shares jumped as much 8.5% on the news before tumbling by more than 3% in intraday trading.

"As we have said repeatedly, where we can resolve legacy legal matters in a reasonable and manageable way, we will do so," Casey said in a statement. "Unfortunately, that has not been possible to date regarding the allegations relating to Questcor's charitable foundation activities, despite what we believe was lawful and appropriate activity. We are confident that the litigation process will focus the contested issues and be a productive step in reaching resolution.

 

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