Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Pharmacy Connected with Meningitis Outbreak Files For Bankruptcy
Author: Joel R. Glucksman
Date: January 3, 2013
Key Contacts
Back
A few short months following the deadly meningitis outbreak that impacted hundreds of people nationwide, the pharmacy blamed for the outbreak has filed for Chapter 11 bankruptcy protection.
New England Compounding Center, a specialty pharmacy, filed for protection under bankruptcy law in the U.S. Bankruptcy Court for the District of Massachusetts, as heavy litigation costs have threatened the company’s finances. The group currently faces a number of personal injury lawsuits after distributing tainted steroid shots that infected hundreds of people with meningitis and resulted in 39 deaths in September. The outbreak spanned 19 states. The NECC said it plans to set up a fund through the bankruptcy process to compensate victims and pay out claims.
“We want to assemble a substantial fund, and then distribute it fairly and efficiently to those who are entitled to relief,” Keith Lowey, NECC chief restructuring officer, told Reuters.
The company’s problems did not begin with the recent outbreak, and the NECC has narrowly escaped severe punishment from health officials in the past, the new source reports. Concerns over insufficient documentation and poor controls involving sterilization were addressed years ago, but regulations have focused more heavily on these questions since the September outbreak.
In addition to taking action against the company itself, attorneys of the victims told the Boston Globe that they are likely to pursue litigation against the companies associated with the center, as the NECC has few assets to compensate those impacted by the recent outbreak. They also noted that they plan to take an aggressive approach toward obtaining compensation for the victims and hope to begin making distributions as early as 2013.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.