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Westlaw News

Mallinckrodt looks to fend off 'police power' action amid bankruptcy

Mallinckrodt PLC on Monday moved to block hundreds of state and local governments from advancing ongoing opioid-related litigation against it, looking to ensure that its bankruptcy can proceed without interruption.

The drugmaker, represented by Latham & Watkins, filed a motion for a preliminary injunction in the U.S. Bankruptcy Court for the District of Delaware on Monday, shortly after filing its Chapter 11 case. While Chapter 11 affords debtors an automatic stay of ongoing legal actions, Mallinckrodt expressed concerns in its motion that some government entities that have not agreed to settle their opioid claims may attempt to proceed with their legal actions by invoking a ‘police power’ exception to the stay.

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