Upfront Payment Option
All TPP Class Members will have the right to receive an Upfront Payment. The Upfront Payment Option Right can be exercised by
providing written notice to the Notice and Claims Administrator within five (5) days of the expiration of the objection/opt-out
deadline set by the Court, which is June 1, 2024. If at least 90% (on a claims approved basis, not a TPP claimant basis) of TPP
claimants (of the TPP claimants that submitted approved claims in the Mallinckrodt bankruptcy) elect this option by June 6, 2024,
70% of the Settlement Fund, net of Court-approved costs (the “Upfront Funds”), shall be set aside for Upfront Payments.To receive
its Upfront Payment, the TPP Class Member must agree (a) to participate in the TPP Class and to be bound by the Settlement, and
(b) that 7.5% of its recovery will be set aside into an escrow account pursuant to the Court’s Common Benefit Order. Upfront Funds
will, within 5 business days of the Effective Date, be distributed on a pro rata basis consistent with the allocation of the funds
in the Mallinckrodt proceeding and the terms of the Final Approval Order. Any TPP Class Member that elects the Upfront Payment
Option Right must also complete and submit a Class Claim Form by the December 15, 2024 claim-filing deadline. The ultimate recovery
for a TPP Class Member that elects the Upfront Payment Option Right will be “trued-up” in accordance with the TPP Claims Methodology
set forth in Sections C and D of the Class Claim Form and will account for the amount of any Upfront Payment.
Settlement Class Counsel has requested that the Court award attorneys’ fees of 20% of the Settlement Fund, including expenses and net of the Upfront Funds (except, as provided below), estimated settlement notice and administration costs, expert costs, and service awards (ECF No. 706). This amount includes: the 7.5% common benefit obligation under PTO No. 9 (ECF No. 567) as to the non-Upfront Funds.
Attorneys’ fees as to the Upfront Funds will be handled as follows: (a) 7.5% of all Upfront Funds shall be set-aside into an escrow account pursuant to the Court’s Common Benefit Order; (b) if a TPP Class Member is represented by private counsel pursuant to a pre-existing fee contract, and if that private counsel is authorized to, and does on behalf of its client, properly exercise the Upfront Payment Option Right, and receives settlement monies on behalf of the TPP Class Member, then the terms of that fee contract shall govern any payments due to that private counsel; the contractual fee payment and the 7.5% common benefit assessment represents the TPP Class Member’s share of Court-approved fees and costs; and (c) if a TPP Class Member who is not represented by a pre-existing fee agreement properly exercises its Upfront Payment Option Right, then the Settlement Administrator shall deduct from the Upfront claim amount prior to payment, that TPP Class Member’s 12.5% share of Court-approved Settlement Class Counsel’s fees and costs (in addition to the 7.5% common benefit set aside).
To exercise the Upfront Payment Option, a TPP Class Member must provide written notice to the Notice and Claims Administrator on or before June 6, 2024 of its intention to exercise that option. This notice, which shall be maintained as confidential by the Notice and Claims Administrator, can be submitted on a consolidated basis (i.e., in a single spreadsheet) on behalf of multiple TPP Class Members as described below.
The information required to be provided in the notice (or, in the case of II.(C), supplemented by July 1, 2024) is the following:
I. For TPP Class Members who submitted a claim to the Mallinckrodt Opioid Master Trust II:
II. For TPP Class Members who did not submit a claim to the Mallinckrodt Opioid Master Trust II:
To calculate its Claim Amount, the TPP Class Member must undertake the following methodology:
Settlement Class Counsel has requested that the Court award attorneys’ fees of 20% of the Settlement Fund, including expenses and net of the Upfront Funds (except, as provided below), estimated settlement notice and administration costs, expert costs, and service awards (ECF No. 706). This amount includes: the 7.5% common benefit obligation under PTO No. 9 (ECF No. 567) as to the non-Upfront Funds.
Attorneys’ fees as to the Upfront Funds will be handled as follows: (a) 7.5% of all Upfront Funds shall be set-aside into an escrow account pursuant to the Court’s Common Benefit Order; (b) if a TPP Class Member is represented by private counsel pursuant to a pre-existing fee contract, and if that private counsel is authorized to, and does on behalf of its client, properly exercise the Upfront Payment Option Right, and receives settlement monies on behalf of the TPP Class Member, then the terms of that fee contract shall govern any payments due to that private counsel; the contractual fee payment and the 7.5% common benefit assessment represents the TPP Class Member’s share of Court-approved fees and costs; and (c) if a TPP Class Member who is not represented by a pre-existing fee agreement properly exercises its Upfront Payment Option Right, then the Settlement Administrator shall deduct from the Upfront claim amount prior to payment, that TPP Class Member’s 12.5% share of Court-approved Settlement Class Counsel’s fees and costs (in addition to the 7.5% common benefit set aside).
To exercise the Upfront Payment Option, a TPP Class Member must provide written notice to the Notice and Claims Administrator on or before June 6, 2024 of its intention to exercise that option. This notice, which shall be maintained as confidential by the Notice and Claims Administrator, can be submitted on a consolidated basis (i.e., in a single spreadsheet) on behalf of multiple TPP Class Members as described below.
The information required to be provided in the notice (or, in the case of II.(C), supplemented by July 1, 2024) is the following:
I. For TPP Class Members who submitted a claim to the Mallinckrodt Opioid Master Trust II:
(A) The TPP Class Member’s name;
(B) The last four digits of the TPP Class Member’s FEIN;
(C) The amount of the allowed claim the TPP Class Member received from the Mallinckrodt Trust;
(D) If the TPP Class Member submitted a consolidated claim for multiple TPP claimants to the Mallinckrodt Opioid Trust, the information in items A – C shall be provided with respect to the named TPP entity that submitted the consolidated claim and was assigned an allowed claim amount by the Mallinckrodt Trustee. In addition such TPP Class Members must also provide a list of any ASO client(s), with the last 4 digits of their FEIN(s), who were included in that consolidated Mallinckrodt claim; and
(E) A certification as to the accuracy of the information signed by an authorized representative of the TPP Class Member.
(B) The last four digits of the TPP Class Member’s FEIN;
(C) The amount of the allowed claim the TPP Class Member received from the Mallinckrodt Trust;
(D) If the TPP Class Member submitted a consolidated claim for multiple TPP claimants to the Mallinckrodt Opioid Trust, the information in items A – C shall be provided with respect to the named TPP entity that submitted the consolidated claim and was assigned an allowed claim amount by the Mallinckrodt Trustee. In addition such TPP Class Members must also provide a list of any ASO client(s), with the last 4 digits of their FEIN(s), who were included in that consolidated Mallinckrodt claim; and
(E) A certification as to the accuracy of the information signed by an authorized representative of the TPP Class Member.
II. For TPP Class Members who did not submit a claim to the Mallinckrodt Opioid Master Trust II:
(A) The TPP Class Member’s name;
(B) The last four digits of the TPP Class Member’s FEIN;
(C) The Claim Amount for each TPP Class Member as calculated via the methodology set forth below (which must be provided on or before July 31, 2024)
(D) A TPP entity may submit a consolidated Claim for ASO clients by providing the information in subparagraphs (A) through (C) above in a single spreadsheet for each ASO; and
(E) A certification that the Claim Amount was calculated pursuant to the applicable methodology and as to the accuracy of the information signed by an authorized representative of the TPP Class Member.
(B) The last four digits of the TPP Class Member’s FEIN;
(C) The Claim Amount for each TPP Class Member as calculated via the methodology set forth below (which must be provided on or before July 31, 2024)
(D) A TPP entity may submit a consolidated Claim for ASO clients by providing the information in subparagraphs (A) through (C) above in a single spreadsheet for each ASO; and
(E) A certification that the Claim Amount was calculated pursuant to the applicable methodology and as to the accuracy of the information signed by an authorized representative of the TPP Class Member.
To calculate its Claim Amount, the TPP Class Member must undertake the following methodology:
For the period of January 1, 2008 through December 31, 2020, determine:
Download Appendix A here.
Download Appendix B here.
Download Appendix C here.
The TPP Class Members’ Claim Amount is calculated by adding the dollar amounts from c. and e. above.
a. The number of unique members who were prescribed one or more of the drugs identified on the NDC List (see Appendix A).
b. The number of unique prescriptions paid, all or in part, by Your plan for the drugs identified on the NDC List (see Appendix A).
c. The total final dollars paid by Your plan for the prescriptions for the drugs identified in b above.
d. The number of unique members identified in a above who were diagnosed with an Opioid Use Disorder, using one or more of the codes on the OUD ICD 9 and 10 List (see Appendix B).
e. For the members identified in d above, the total dollar amount of medical claims with the ICD, CPT, or HCPS codes on the OUD Medical Claims Codes List, (see Appendix C), paid for those members.
f. The total number of members, subscribers and covered dependents covered by your plan or administered by your plan as of January 1, 2021.
b. The number of unique prescriptions paid, all or in part, by Your plan for the drugs identified on the NDC List (see Appendix A).
c. The total final dollars paid by Your plan for the prescriptions for the drugs identified in b above.
d. The number of unique members identified in a above who were diagnosed with an Opioid Use Disorder, using one or more of the codes on the OUD ICD 9 and 10 List (see Appendix B).
e. For the members identified in d above, the total dollar amount of medical claims with the ICD, CPT, or HCPS codes on the OUD Medical Claims Codes List, (see Appendix C), paid for those members.
f. The total number of members, subscribers and covered dependents covered by your plan or administered by your plan as of January 1, 2021.
Download Appendix A here.
Download Appendix B here.
Download Appendix C here.
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