Insurance Fraud Action Against Major Opioid Manufacturer

Governor Andrew Cuomo today announced the New York State Department of Financial Services has initiated administrative proceedings and filed charges against Mallinckrodt plc and its subsidiaries, Mallinckrodt LLC and SpecGX LLC. These charges are the first to be filed in DFS' ongoing investigation into the entities that created and perpetuated the opioid crisis. 

"The worst frauds are those that go beyond individual harm to institutionalized systemic fraud - and the opioid scheme is no exception," Governor Cuomo said. "The opioid manufacturers knew how addictive and dangerous their products were and they used it as a business model for their own financial gain at the cost of thousands of human lives and billions of dollars. The damage they have caused by creating and perpetuating the opioid epidemic that is devastating our state and nation has been immeasurable, and we are taking action to ensure these big pharmaceutical companies are held responsible for their fraudulent practices." 

Source: The Office of Governor Andrew M. Cuomo