Wednesday, December 16, 2015
Bankruptcy Judge Gets Status Report on NECC
By Walter F. Roche Jr.
A federal bankruptcy judge got a year end status report on claims filed in the case of the New England Compounding Center including an agreement for a Nashville clinic to drop its $1.17 billion claim.
The report from Paul D. Moore, who served as trustee in the case, was delivered in a Springfield. Mass. courtroom with most of the participating lawyers testifying by phone.
Bankruptcy Judge Henry J. Boroff agreed to delay till Jan. 6 a separate hearing on disputed claims filed by the Inspira Health Network and a group of insurers, including Lexington Insurance.
Moore's report listed only two claims on which he did not register objections: a $13,760 claim by American Express Travel Services and a $1,858.35 claim by Liquidity Solutions.
The report listed 11 claims that are to be eliminated because of subsequent claims that superceded the original claims and 32 claims that were either waived or released.
The Saint Thomas Outpatient Neurosurgical Center waived its claim for $1.17 billion when it agreed to the liquidation plan earlier approved by Boroff.
Also waived were claims by the parent company and affiliates of Saint Thomas.
Moore's report also listed 23 claims which were filed without sufficient documentation.
In an email following the hearing Moore said that he had paid all of the approved or allowed claims, but payments to victims are being handled by a court appointed person overseeing the trust in which the $200 million has been placed.
The liquidation plan approved by Boroff could provide some $200 million or more to victims of the 2012 fungal meningitis outbreak, which state and federal regulators have concluded was caused by fungus tainted steroids injected into the spines and other joints of patients across the country.
The outbreak sickened 778 patients, killing 76 of them.
The lawyer for Moore told Boroff that negotiations were ongoing with a couple other claimants.
The hearing on the Inspira and related cases is set for 11:30 a.m. on Jan. 6. Inspira entered into a $16 million settlement of suits filed by patients who had been injected with fungus laden steroids from NECC.