Mallinckrodt may renege on $1.7 billion opioid settlement

"It could be devastating," said Joseph Steinfeld, an attorney representing individuals harmed by Mallinckrodt's pain medications. "It potentially could wipe out the whole settlement."

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If Mallinckrodt files a second bankruptcy, payouts would likely go first to company executives, staff and other creditors, with opioid-related claims paid out last.