Why Mallinckrodt Stock Is Plunging Today
Shares of Mallinckrodt (NYSE: MNK) are plunging today, down 16.7% as of 11:43 a.m. EDT. The beleaguered drugmaker didn't announce any new developments, but it didn't have to do so for a major sell-off of the stock to continue.
Mallinckrodt shares sank earlier this week after a federal appeals court ruled against the company in a patent infringement lawsuit. Investors also remain worried about Mallinckrodt's prospects in multiple opioid litigation cases. On Monday, Johnson & Johnson was ordered to pay $572 million in an Oklahoma lawsuit related to its opioid drugs.
Perhaps the most disturbing news for Mallinckrodt is that Purdue Pharma is rumored to be considering settling all pending opioid litigation for between $10 billion and $12 billion. As part of this deal, Purdue would also file for bankruptcy.
Source Fool.com
