Q9 — Mallinckrodt's H.P. Acthar Gel

Have private payers sued over Acthar?

Yes — a 2017 class action by Rockford, Illinois alleged anticompetitive conduct since 2007, and a $65.75 million shareholder settlement over concealed federal-reimbursement dependence was approved by the bankruptcy court.

Nate Mercer/July 4, 2025
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Yes. In April 2017 the City of Rockford, Illinois filed a putative class action on behalf of self-funded entities that paid for Acthar from August 2007 onwards, alleging that Mallinckrodt engaged in anticompetitive, unfair and deceptive acts to artificially raise and maintain Acthar's price, including by acquiring Synacthen. Investors also sued, and Mallinckrodt's bankruptcy court approved a $65.75 million settlement with shareholders who claimed the company concealed its reliance on federal reimbursement for Acthar. The Acthar liabilities also contributed to Mallinckrodt's financial difficulties; its Acthar settlement with the government was structured to be paid over seven years as part of its first Chapter 11 reorganisation.