Friday, August 1, 2014

 July 31, 2014

Bankruptcy Settlement OK'd by court

U.S. Bankruptcy Court Judge Henry Boroff today formally approved a $100 million settlement in the case of the New England Compounding Company, the firm blamed for a nationwide fungal meningitis outbreak.
In a six-page decision, Boroff granted a motion filed by the bankruptcy trustee Paul Moore.
The settlement includes payments from NECC's owners and related parties along with insurance companies that had provided NECC with coverage.
The payments will go to creditors including hundreds of victims of the outbreak and their survivors.
Boroff said Moore's settlement motion "is granted in all respects."
Just how the money will be divvied up among victims and creditors will be determined after a formal plan is submitted and approved by the judge.
The 2012 outbreak killed 64 patients, with the largest number of victims getting treatment in Michigan. Over 750 were sickened.

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