Drugmaker Mallinckrodt Plc has begun confidential discussions with creditors and is considering placing its U.S. generic drug business into bankruptcy to address the debt maturities and liabilities arising out of the opioid crisis, the Wall Street Journal reported, citing people familiar with the matter.

The company is considering a Chapter 11 filing covering its U.S. generics business, hoping to resolve claims from state and local governments stemming from the cost of combating opioid addiction, the report said.

Mallinckrodt did not immediately respond to a request for comment.

Shares of the company fell 43% on Monday afternoon before rebounding by day’s end to close at $4.17, a fall of 95 cents or almost 19%.

A number of U.S. states and local governments have filed lawsuits against opioid drugmakers and wholesale distributors holding them accountable for a national drug addiction epidemic.