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April 24, 2020

New York Brings Civil Charges of Insurance Fraud Against Mallinckrodt

On April 21, the State of New York brought civil charges accusing Mallinckrodt of insurance fraud for downplaying the risks and overstating the benefits of long-term opioid treatment resulting in medically unnecessary prescriptions. According to the New York Times, Mallinckrodt is charged with the violation of two New York insurance laws that each carry a penalty of $5,000. The state hopes to add these charges to the agreement made on February 25, wherein the company is to pay $1.6 billion for thousands of other lawsuits in its role in the opioid epidemic.