Mallinckrodt Plc.

Mallinckrodt Plc. (formerly, NYSE: MNK)— On March 17, 2023, Alexander E. Parker, on behalf of The Buxton Helmsley Group, Inc. (“BHG”) and its affiliates, publicly blew the whistle and released the results of BHG’s investigation (led by Mr. Parker) into Mallinckrodt plc., after BHG—given the results of its investigation—had opened a short interest in the company’s post-reorganization junior debt securities. (Mallinckrodt had already entered Chapter 11 proceedings in October 2020, and had emerged from those proceedings in June 2022).

Mr. Parker, as part of his 35-page March 17, 2023, public report, extensively discussed and outlined how the company had apparently not only concealed billions of dollars in expenses from U.S. SEC filings leading up to the company’s emergence from its initial reorganization proceedings (in apparent violation of GAAP and Regulation S-X), but also—under the very same Chief Financial Officer—had resumed a mirror scheme of apparent accounting and securities fraud upon the company’s emergence from reorganization.

Mr. Parker also unearthed evidence and exposed that the company’s Chief Financial Officer was not even the actively licensed Certified Public Accountant the company’s website purported him to be; a misleading of public investors that remained uncorrected until Mr. Parker publicly (in a follow-on public letter) turned the matter over to the Pennsylvania State Board of Accountancy, citing legislation that could subject the CFO to disciplinary action.

Mallinckrodt’s leadership did not even minimally deny Mr. Parker’s extensive evidence of accounting and securities fraud occurring at the company (failing to address the fraud allegations on any level).

The company’s stock price then plummeted over 85%, with first-lien creditors cornering the company into bankruptcy negotiations. Throughout these restructuring negotiations, Mr. Parker publicly noticed the company as to verbal statements being made on earnings calls that further supported the company’s apparent violations of accounting standards and securities laws.

Mallinckrodt then skipped a quarterly earnings call (after Mr. Parker advised the company they were unwise to continue their contradictory statements) before, on August 28, 2023 (days after Mr. Parker’s last public letter), Mallinckrodt re-filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware (Case No.: 23-11258).

On September 11, 2023, Mr. Parker (on behalf of BHG) issued a public statement via press release, pointing out the very page of the Mallinckrodt’s disclosure statement filing (in the bankruptcy court) which disclosed the asset value depreciation expenses that Mr. Parker had long alleged existed in reality (yet were being concealed from filings with the U.S. SEC) since his initial public report on March 17, 2023.

On November 30, 2023, the U.S. Securities and Exchange Commission charged Mallinckrodt with concealing over $500 million of liability exposure from pre-reorganization financial statements, in violation of GAAP ASC 450-20 and the anti-fraud provisions of U.S. securities laws. Mr. Parker had tipped off the Commission as to evidential violations of these additional accounting standards and securities laws in October 2021.

Relevant Disclosure: The above-described investor engagement campaign was conducted by The Buxton Helmsley Group, Inc., which was previously authorized to use the “Buxton Helmsley” trademark. The Buxton Helmsley Group, Inc. is in no way affiliated with Buxton Helmsley, Inc. or its affiliated entities. This information is only relevant to Buxton Helmsley, Inc. and its affiliated entities merely due to their employment of the same key principal, Alexander E. Parker.