On March 17, 2023, The Buxton Helmsley Group, Inc., a “New York City-based investment advisor to clients with financial interests in Mallinckrodt Plc.” issued two open letters and press releases, later corrected. In a corrected press release, Buxton Helmsley Group alleged that it is “delivering the results of an extensive investigation into financial misconduct at the Company involving an evidenced scheme of concealing asset value depreciation/impairment expenses, in violation of GAAP ASC 350, 360 and Regulation S-X, taking place both before and after the Company’s Chapter 11 Reorganization.”
The Buxton Helmsley Group also alleged that it is “demanding the restatement of the historical financial statements of the Company, and demanding write-downs of post-reorganization asset values based on the Company’s prior-professed standards of determining the fair value of asset’s securing the Company’s capital structure.”
On this news, the price of Mallinckrodt’s stock price fell 5% to close at $7.78 per share on March 20, 2023.
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