Mallinckrodt $46M Securities Class Action Settlement

If you purchased or acquired Mallinckrodt common stock between May 3, 2016, and March 13, 2020, you may be eligible to claim a a payment from a class action settlement.

Mallinckrodt has agreed to pay $46 million to settle a class action lawsuit for alleged violations of the Securities Exchange Act of 1934. The lawsuit claims that the company and its executives made false or misleading statements, which allegedly inflated the stock share price during the class period.

Who is eligible to claim a payout?

People or entities that:

• Purchased or acquired Mallinckrodt common stock
• The purchases were made between May 3, 2016, and March 13, 2020

If you meet these criteria and have not opted out of the settlement, you are considered a class member.

How much will my settlement payment be?

The amount each approved claimant receives depends on several factors:

• The total dollar amount and number of valid claims submitted.
• The individual losses incurred by each claimant, calculated according to the Plan of Allocation.

The Plan of Allocation states the following:

• For shares sold before April 30, 2019: Recognized Loss Amount is $0.
• For shares sold between April 30, 2019, and March 13, 2020: The lesser of the decline in inflation during the holding period or the purchase price minus the sale price.
• For shares sold between March 16, 2020, and June 12, 2020: The least of the decline in inflation, the purchase price minus the sale price, or the purchase price minus the average closing price between March 16, 2020, and the sale date.
• For shares held as of June 12, 2020: The lesser of the decline in inflation or the purchase price minus $2.83.

Is supporting documentation required to receive a payout?

Gather and submit the following documentation:

• Last four of Social Security Number or Taxpayer Identification Number
• Business information if claimant is not an individual
• Trade Dates, number of shares purchased or acquired for each date, and total purchase or acquisition price
• Brokerage confirmation slips, monthly account statements, and any additional transaction documentation

Claim Submission Instructions

Follow these steps to submit your claim:

1. Access the online claim form or download the pdf claim form to print and mail.
2. Enter the required personal and/or business information.
3. Attach copies of required documentation.
4. Submit online or mail to the settlement administrator by April 14, 2025.

Settlement administrator address: Mallinckrodt Securities Settlement, Claims Administrator, c/o Gilardi – a Verita Company, P.O. Box 301135, Los Angeles, CA 90030-1135

Payout method options

Class members will select from the following payment options:

• Electronic transfer
• Check by mail

$46 Million settlement fund

The settlement fund of $5,000,000 will cover:

• Payments to approved claimants
• Notice and settlement administration costs
• Attorneys' fees of up to $1,500,000 plus expenses and interest
• Service awards to class representatives

Important Dates

• Deadline to File a Claim: April 14, 2025
• Fairness Hearing: April 15, 2025

When is the Mallinckrodt Payout Date?

After the Fairness Hearing on April 15, 2025, once the court approves the settlement, the claims will be processed, and payments will be issued to approved claimants.

Why is There a Class Action Settlement?

The lawsuit was filed due to alleged violations of the Securities Exchange Act of 1934 by Mallinckrodt. The parties agreed to settle to avoid the costs and risks of a possible trial and to provide compensation to affected former and current shareholders.