Attorneys Withdraw $2.1 million NECC Claim

By Walter F. Roche Jr.

A $2.1 million claim in the bankruptcy case of the New England Compounding Center has been withdrawn and a hearing scheduled for next month is expected to be canceled.
In a filing today in U.S. Bankruptcy Court in Massachusetts, attorneys for creditors in the NECC withdrew their claim for attorneys fees and expenses but left the door open to pursue the claims at a later date.
The creditors' attorneys had originally filed a request for $3.05 million, but later reduced the request to $2.1 million when Florida attorney Melvin Wright slashed his request from $1.35 million to $411,780.59.
In the filing today, the attorneys cited the potential cost of the Nov. 10 hearing.
"After conferring with other parties-in-interest and considering the potential costs associated with further pursuit of the omnibus application, the parties have determined that withdrawal of the omnibus application is in the best interest of the parties and the estate," the filing states.
The motion notes that the withdawal is "without prejudice to the collective and individual rights of the parties to pursue their claims in an alternative forum, including but not limited to" related civil cases now pending before U.S. District Judge Rya Zobel.
Bankruptcy Judge Henry J. Boroff, meanwhile, is still considering a trimmed down $3.75 million request from Paul D. Moore, the attorney who served as trustee in the bankruptcy. Moore initially requested $5.75 million.
Attorneys for plaintiffs have asked Boroff to further reduce Moore's fee request.
NECC is the company blamed for a 2012 fungal meningitis outbreak which sickened 778 patients across the country, killing 76 of them.
NECC filed for bankruptcy on Dec. 21, 2012. Some $200 million is expected to be available for creditors and victims of NECC.