An opioid maker will pay $1.6 billion to help abate the addiction crisis

“While the opioid crisis continues to claim the lives of South Carolinians, this improved agreement with Mallinckrodt represents an important step in an ongoing effort to hold accountable those who are responsible for the epidemic,” said Attorney General Alan Wils

MNK will pay $1.6 billion cash into a trust that will go toward abating the opioid crisis, including valid claims related to MNK’s role in the opioid crisis raised by non-governmental claimants.

MNK will pay:

-      $450 million upon emergence from bankruptcy.

-      $200 million annually on 1st and 2nd anniversary of emergence from bankruptcy.

-      $150 million annually on 3rd through 7th anniversaries of emergence from bankruptcy.

MNK agreed it will not market its opioid business and ensure it will prevent drug misuse.

This improves a February deal by moving $150 million from the last payment to the 1st.

Details about how much each state will receive, how the money will be distributed and how the trust will be administered are all still being negotiated.