The Buxton Helmsley Group, Inc. (together with certain of its affiliates, “BHG” or “we”), the New York City-based investment advisor to certain clients with financial interests in Mallinckrodt Plc. (“Mallinckrodt” or the “Company”) (NYSE: MNK), today issued the following statement regarding the Company’s August 28, 2023, filing for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware (Case No. 23-11258):

“We have reviewed the Company’s disclosure statement (indexed at docket number 18) and, buried at page 490 of that statement of disclosures, it is revealed that the Company is – just as BHG has been publicly alleging since its initial March 17, 2023, public report – arguably delaying and concealing disclosure of nearly $1 billion in intangible asset depreciation expenses that were affecting investors even at the time of the Company’s recent Form 10-Q filing with the U.S. Securities and Exchange Commission on August 8, 2023. Such a delay in accrual of asset value depreciation expenses arguably violates the Company’s obligation to, under GAAP ASC 350/360 (and, even further, under Regulation S-X), accrue losses at the time those losses are affecting investors. The Company already made apparent these belatedly revealed losses to investors within that previous Form 10-Q filing, when it signaled its intent to sign onto a restructuring support agreement that would wipe out current shareholders, as they are set to receive no recovery. Current shareholders only had $625 million in “shareholder’s equity” value associated with their investment interests, as of the date of the Company’s recent Form 10-Q filing, due to the arguable concealment of these intangible asset depreciation expenses amounting to nearly $1 billion. We reaffirm that the Company’s auditor, Deloitte & Touche, still remains silent and apparently engaged.

BHG, lastly, notes that many of the Company’s very publicly dissident shareholders appear to suddenly support a restructuring plan that ‘wipes out’ their personal equity interests for no consideration received. The shareholders whose shares will be wiped out also – surprisingly – are agreeing not to prosecute the directors and officers of the Company, nor object to any settlement offers in class-action lawsuits that they may be a party to, even though one of the Company’s large publicly dissident shareholders has a pending class-action securities fraud lawsuit alleging a securities fraud scheme in line with BHG’s alleged scheme of accounting and securities fraud extensively discussed in our 35-page public report on March 17, 2023.

We maintain hope that the U.S. Securities and Exchange Commission and U.S. Trustee’s Office will conduct a full investigation of these matters prior to any further possible irreparable harm of investors, and will not allow any lead plaintiff (in any class-action fraud lawsuit seeking relief of alleged harms from this Company’s directors and officers) to serve with limited prosecutorial powers on behalf of any putative class. There is a clear reason why this Company’s insiders remained silent without even denying BHG’s securities and accounting fraud allegations extensively laid out on March 17, 2023, and that is because this Company’s insiders apparently knew BHG was correct in its analysis. BHG alleged that this Company was running a mirror accounting and securities fraud scheme as that alleged scheme which occurred leading up to the Company’s emergence from its past reorganization. In other words, BHG’s allegations have arguably been vindicated.”

BHG’s March 17, 2023, public report alleging concealed asset value depreciation expenses, in addition to its public letters to the Company since, may be found at: https://www.buxtonhelmsley.com/mnk/

About Buxton Helmsley: The Buxton Helmsley Group, Inc. is a premier financial service, asset management and securities research firm, providing an array of services to a diversified group of individuals, corporations, trusts, and other entities. The firm’s headquarters are in New York City.

Relevant Disclosure: At the time of BHG’s March 17, 2023, public report discussing evidence of and alleging a repeat scheme of accounting and securities fraud occurring at Mallinckrodt, and to date, certain clients of BHG have retained a short interest in the Company’s issued securities, and have or will, profit on that short position. BHG and its clients held that short position to recover at least a portion of their monetary losses experienced as a result of the Company’s mirror alleged accounting and securities fraud scheme engaged in up until the Company’s emergence from its past reorganization in early 2022. Given that BHG’s whistleblowing activities have been vindicated, BHG is prepared to make a donation of a portion of its profits to a charity focused on fighting opioid addiction, and providing associated relief for those experiencing such addiction.

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