News - Proposed NECC Settlement
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.
Due diligence efforts are in progress by plaintiffs' counsel regarding the status and assets of the involved partites and entities. A final agreement will hopefully be concluded in the next few months, which will require court approval. A payout to claimaints is anticipated in 2014, if the foregoing steps are concluded as contemplated.
The case will continue against other defendants, including other companies in Massachusetts and against the clinics in Indiana and other states which purchased the contaminated injections from NECC.
St. Jude Medical Defibrillator Recall
FDA has identified this as a Class I recall, the most serious type of recall. Use of these devices may cause serious injuries or death.
NECC Second Payments Expected This Summer
Tort Trustee Reports Payment Expectation at MDL Status Conference
Final NECC Victims' MDL Payments Due By Summer
The second and final payments to victims of the 2012 fungal meningitis outbreak should come this summer and the underlying court case should be nearing final resolution by August.
Cadden Guilty in NECC Criminal Trial
NECC owner Barry Cadden guilty on racketeering and fraud claims
What is Mass Tort Litigation?
Often seen with defective drugs or medical implants.