December 23, 2013
The Court-appointed Plaintiffs’ Steering Committee (PSC), charged with speaking for hundreds of victims of tainted steroids produced by the New England Compounding Pharmacy, Inc. (NECC), today announced a preliminary settlement with the owners, operators and insurers of the bankrupt NECC.
A conditional agreement has been reached between bankruptcy trustee Paul D. Moore, the PSC and the Unsecured Creditors Committee under which the Cadden and Conigliaro families, the insurers of NECC and related company Ameridose, have promised to pay to a compensation fund an amount that may exceed $100 million. This fund will allow victims who received injections of tainted steroids made by NECC to seek a measure of justice against those wrongdoers.
The agreements are not final, require due diligence on the part of the PSC to ensure the rights to victims are protected under these agreements, and will be conditional upon approval by creditors and a federal court for fairness and adequacy.
“These corporate-owned companies chose to put profits over patient safety, as detailed in the hundreds of lawsuits filed against these companies, including St. Thomas, by families whose loved ones died or suffered serious injuries,” said PSC Member and Lieff Cabraser attorney Mark Chalos, who also represents a number of affected families. “Any corporation that endangers our families by breaking patient safety rules should be held accountable for their conduct – no matter how rich or powerful those corporations are,” said Chalos.
There is no deadline set for when details of the proposal will be made public.
The next court hearing in connection with this case is scheduled for January 10, 2014, at which point further due diligence will have been undertaken and additional details can likely be released. Full and complete information will be released to the public in due course and all victims who file a proof of claim in the Bankruptcy Court will have the opportunity to support or oppose the settlement.
All victims and their counsel are reminded that the Bankruptcy Court has established a deadline of January 15th, 2014 at 4 p.m. EST to submit a claim in the NECC bankruptcy proceeding. Further information regarding that can be found at http://www.donlinrecano.com/cases/proofofclaim/necp.