Pharmaceutical company Mallinckrodt, fresh out of its second bankruptcy, was spared having to pay a $40 million penalty levied by the Securities and Exchange Commission (SEC) for alleged disclosure and accounting failures related to its underpaying of Medicaid rebates regarding its drug Acthar.
The SEC said in an administrative proceeding Thursday it considered Mallinckrodt’s financial condition and agreement to retain an independent compliance consultant in determining not to impose a penalty. On Nov. 14, Mallinckrodt announced the completion of its financial restructuring to emerge from Chapter 11 proceedings.
