Buxton Helmsley issues letter to Mallinckrodt board regarding value depreciation

The Buxton Helmsley Group, the New York City-based investment advisor to clients with financial interests in Mallinckrodt (MNK), issued an open letter to the company’s board of directors. BHG said, "Given their failure to provide any response to BHG’s March 17, 2023, open letter, which extensively outlaid – after extensive investigation – an evidential multibillion-dollar scheme of concealing asset value depreciation expenses from the Company’s pre- and post-reorganization financial reporting with the U.S. Securities and Exchange Commission (the apparent post-reorganization portion of the accounting and securities fraud scheme, uniquely evidenced by the Company’s very own prior-professed standards of determining the fair value of assets securing capital structure interests). BHG also, in its March 17, 2023, open letter to the Company, publicly noticed the apparently false representations of credentials/licensing being made with relation to the Company’s Chief Financial Officer, Bryan Reasons, who has stood as the Company’s CFO both pre- and post-reorganization. Despite significant declines in the trading values of the Company’s issued equity and debt securities after BHG’s investigation findings being made public on March 17, 2023, the Company and its Board of Directors have remained silent, with no public comment, and have provided no indication of an internal investigation being conducted, even after such extensively detailed evidence-supported allegations of a multibillion-dollar accounting and securities fraud scheme occurring at the Company (in violation of GAAP ASC 350, 360 and Regulation S-X), in addition to false licensing/credential representations occurring at the executive level. Despite no apparent plausible defense to this evidenced accounting and securities fraud scheme, these apparent violations of accounting standards and securities laws remain uncured, after BHG having made clear (within its March 17, 2023, open letter delivered to the Company, U.S. Securities and Exchange Commission, and U.S. Senate Finance Committee) the necessity of restatements of historical financials and required write-downs of post-reorganization asset values, in light of the Company’s prior-professed standards of determining the fair value of assets securing the Company’s capital structure. The Company and its Board of Directors have, even a month after being publicly noticed of the falsity of the representations, failed to cure the apparent false representation of credentials/licensing related to CFO Bryan Reasons."