- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-12-01T15:47:00
Pharmaceutical company Mallinckrodt, fresh out of its second bankruptcy, was spared having to pay a $40 million penalty levied by the Securities and Exchange Commission (SEC) for alleged disclosure and accounting failures related to its underpaying of Medicaid rebates regarding its drug Acthar.
The SEC said in an administrative proceeding Thursday it considered Mallinckrodt’s financial condition and agreement to retain an independent compliance consultant in determining not to impose a penalty. On Nov. 14, Mallinckrodt announced the completion of its financial restructuring to emerge from Chapter 11 proceedings.
Mallinckrodt had also filed for bankruptcy in October 2020, the same year the U.S. government filed a complaint alleging the company knowingly underpaid rebates due for Acthar from 2013-20. In March 2022, the Department of Justice announced the company agreed to pay approximately $260 million for violating the False Claims Act.
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