NECC, Ameridose Profits Topped $200 Million

By Walter F. Roche Jr.

The company blamed for a deadly fungal meningitis outbreak and a closely related firm earned over $200 million in profits in the six year period preceding the 2012 outbreak, according to a filing in U.S. District Court in Boston, Mass.
The filing by the wife of the now jailed president of the defunct drug firms, shows that Barry and Lisa Cadden earned $72 million during that period from their 35 per cent ownership share in the New England Compounding Center and Ameridose.
Lisa Cadden disclosed the profit details in a 25-page motion filed in protest of a recently issued order from U.S. District Judge Richard G. Stearns. The Cadden's children also signed on to the motion which was filed by Bruce Singal, the same lawyer who represented Cadden in his recent criminal trial.
Lisa Cadden argues that because payments for a Wrentham home, along with adjoining properties, jewelry, an $89,220 sailboat, an $86,662 BMW and savings and investment accounts, came from a joint account, she retains ownership in all of those assets.
"Mrs. Cadden has legal right, title and interest in all of this property," the motion states in the request for Stearns to reverse his approval.
Also ordered seized was a $31,875 antique clock and jewelry purchased for $26,302.
Barry Cadden is now serving a nine-year federal prison term following his March conviction on racketeering, mail fraud and related charges.
NECC, the company Cadden helped found, filed for bankruptcy in late 2012. Ameridose, a related drug firm, was closed down by federal regulators and never reopened.
According to the filing Lisa Cadden earned $28 million from her 17.5 per cent share of Ameridose and $8 million from NECC. Barry Cadden had equal shares and profits.
The Caddens and other NECC owners did agree to pay a total of $47.5 million to a settlement fund that has been used to pay outbreak victims. That amount is likely to be increased because the NECC shareholders also agreed to put any tax refunds into the same fund.