The trustee of bankrupt New England Compounding Pharmacy Inc. (NECC) and other parties are close to completing a proposed settlement in which victims of the 2012 meningitis outbreak would receive $100 million. The Bankruptcy trustee reported in early March that he and a committee representing the victims would complete the settlement very soon. A fund set up for the victims would have to be approved by the Massachusetts bankruptcy judge overseeing NECC’s Chapter 11 case.
Under the laws in many states, NECC must be declared insolvent before victims can begin pursuing health care providers and others who distributed the tainted NECC products in individual suits or the multidistrict litigation (MDL). The nationwide meningitis outbreak, which received widespread media attention, resulted in at least 64 deaths. In October 2012, NECC halted its operations and recalled all of its products. Two months later, the company filed for Chapter 11 bankruptcy protection in Massachusetts. There had been a number of lawsuits filed. Plaintiffs in the suits alleged that they contracted meningitis after being injected with the NECC steroid.
This settlement would resolve all claims involving NECC and its companies, as well as other claims involving other allegedly responsible entities and individuals. Our law firm is working in conjunction with Plaintiffs Steering Committee (PSC) member Mark Zamora of the Atlanta-based Zamora Law Firm. Mark was one of the first lawyers to file a lawsuit and the first to have a court ordered inspection of the NECC facilities. Mark and members of the PSC have done a tremendous job.
Source: Law 360
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