Navigation Links
Preliminary Settlement Agreements Establish $100M Fund for Victims of Tainted Steroids Traced to NECC
Date:12/23/2013

BOSTON, Dec. 23, 2013 /PRNewswire/ -- Owners of the bankrupt New England Compounding Pharmacy ("NECC") and NECC's insurers have reached agreements in principle concerning settlements with Bankruptcy Trustee Paul D. Moore, the Official Unsecured Creditor's Committee (the "Committee") and the Plaintiffs Steering Committee (the "PSC") in multidistrict litigation involving NECC pending in Federal Court in Boston (the "MDL") to contribute an amount estimated to exceed $100 million to a compensation fund to be distributed to NECC creditors, including victims who received injections of tainted steroids traced to NECC.  The settlement agreements are subject to final documentation and Bankruptcy Court approval.

The Center for Disease Control estimates that well over 700 people nation-wide have been diagnosed with fungal meningitis or other serious fungal infections. At least 64 deaths have been confirmed.

Paul Moore, the Trustee of bankrupt NECC, commented, "We are pleased that a significant amount of funds will become available for distribution to victims and their families as compensation for the deaths, injuries and suffering they endured as a result of this tragic meningitis outbreak."

David Molton and William Baldiga, partners at Brown Rudnick and counsel to the Committee, added that these settlements "are a material step in expediting compensation to victims and should bring momentum to the Trustee's and Committee's ongoing and vigorous efforts to add to this victims' fund with settlements from others, including medical care providers and pain clinics that administered the tainted steroids to their patients." 

"This preliminary settlement marks a critical milestone in our efforts to maximize recovery for the victims and their families," added Anne Andrews and Harry Roth, co-chairs of the Committee. "We are enormously pleased with what the Trustee and our Committee have accomplished after prolonged negotiations."

Thomas Sobol, lead counsel for the PSC and the PSC's representative with respect to the negotiations, stated that the PSC is also supportive of the preliminary settlements.

NECC's owners commented that "while they deny any liability or wrongdoing, nonetheless they strongly desire to play a major role in establishing a fund for people who died or suffered as a result of this tragic outbreak."

The victim compensation fund will be funded by cash contributions by the owners of NECC as well as from proceeds from, among other things, insurance, tax refunds and the sale of a related business. Pursuant to the bankruptcy process, Judge Henry J. Boroff of the U.S. Bankruptcy Court of the Eastern District of Massachusetts will be asked to confirm a plan containing the terms of the settlement agreements creating and funding the victim's compensation fund. 

As a reminder to all victims and creditors, the Bankruptcy Court established Wednesday, January 15, 2014, at 4:00pm EST as the deadline for submitting their proofs of claim in the NECC bankruptcy proceeding.  This Bar Date Order establishes procedures for filing and submitting claims for injuries suffered due to NECC's contaminated steroid injections. The Trustee and the Committee stress that it is extremely important that anyone who believes he or she has a claim against NECC or involving an NECC product timely file a proof of claim. Failing to do so may have an impact on a person's ability to obtain a distribution from the compensation fund established to compensate NECC victims or creditors.  Information regarding the filing date deadline and the proof of claim process can be found at  http://www.donlinrecano.com/cases/proofofclaim/necp.  


'/>"/>
SOURCE Brown Rudnick LLP
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Initial Studies of Channel Medsystems Cryothermic Therapy Demonstrate Preliminary Safety and Tolerability; Results Presented at the 42nd AAGL Global Congress
2. Simcere Pharmaceutical Group Reports Preliminary Unaudited Third Quarter 2013 Results
3. Preliminary Financial Results, Quarterly Reports and Upcoming Conference Schedules - Research Report on Avanir, BioScrip, Chemed, Foundation Medicine, and Antares
4. West Completes Preliminary Study Evaluating the SmartDose Electronic Patch Injector Technology Platform, Which Incorporates a Daikyo Crystal Zenith Cartridge
5. Avanir Pharmaceuticals Pre-Announces Preliminary Fiscal 2013 Year End Financial Information
6. Volcano Corporation Announces Third Quarter 2013 Revenues, Updated Revenue Guidance For Full Year 2013 And Preliminary Revenue Guidance For 2014
7. MEI Pharmas Mitochondrial Inhibitor ME-344 Shows Preliminary Evidence of Single-Agent Activity in First-in-Human Clinical Study
8. Simcere Pharmaceutical Group Reports Preliminary Unaudited Second Quarter 2013 Results
9. Alexza Reports Preliminary 2013 Second Quarter Financial Results
10. Alere Announces Preliminary Results Of Voting At Annual Meeting
11. Hill-Rom Announces Preliminary Fiscal 2013 Third Quarter Results and Search for New CFO; Adjusted Earnings Per Share Expected to be in Line with Guidance
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:8/17/2017)... , Aug. 17, 2017 Bio-Ess Laboratories, LLC Chief Science Officer, ... titer and present new data on Cell-Ess® Universal Titer Boost ... Boston, MA August 21-25.  The Bioprocessing Summit convenes more ... challenges. ... ...
(Date:8/15/2017)...  Axium Pharmaceuticals Inc., the creator of the drug Truveta ... stages of an IPO. The United States ... cost of a prescription epilepsy drug being $450.00-$1200.00 for a one month ... AXIUM PHARMACEUTICALS, INC ... Another staggering figure is the fact that Americans spent $42 billion on ...
(Date:8/14/2017)... PETACH TIKVAH, Israel , Aug. 15, ... leading developer of adult stem cell technologies for neurodegenerative ... June 30, 2017. ... our pivotal Phase 3 trial to investigate NurOwn ® ... and Chief Executive Officer of BrainStorm. "We have agreements ...
Breaking Medicine Technology:
(Date:8/21/2017)... (PRWEB) , ... August 21, 2017 , ... The American ... Network (AHN), a Highmark Health company, to its Board of Trustees for a ... not-for-profit association of health care provider organizations and individuals that are committed to the ...
(Date:8/20/2017)... ... 20, 2017 , ... A total solar eclipse will occur across the U.S. on ... moon moves between the sun and Earth. This rare event will be magnificent to witness, ... keep you safe on the road during the total eclipse of the sun. , 1. ...
(Date:8/19/2017)... ... August 19, 2017 , ... ... Jr., will feature the Aurum Group in an upcoming episode, slated to air ... of Innovations will feature the Aurum Group; a company committed to supporting dentistry ...
(Date:8/19/2017)... New York, New York (PRWEB) , ... August ... ... Fruit Street Health has announced that it is the first organization with pending ... the CDC’s National Diabetes Prevention Program (“DPP”) via group telehealth classes and live ...
(Date:8/19/2017)... NJ (PRWEB) , ... August 19, 2017 , ... ... Park, NJ, is a diverse community of over 1,000 passionate employees, caregivers, volunteers, ... aging. After Parker at Stonegate changed ownership, it was time to refresh the ...
Breaking Medicine News(10 mins):