Massachusetts Pharmacy linked to U.S. Meningitis Outbreak Seeks Bankruptcy Protection

December 31st, 2012 by Reed Allmand

New England Compounding Center (NECC), the Massachusetts specialty pharmacy believed to be the root cause of the meningitis outbreak in United States, filed for Chapter 11 bankruptcy protection.  The filing will help the pharmacy establish a fund to compensate victims while settling other outstanding debt with additional creditors.

The Centers for Disease Control and Prevention claims close to 40 people died and over 600 people were injured from receiving drug injections that were meant to treat back pain.  The injection vials were later found to be contaminated or tainted.  NECC ships drug supplies throughout the United States to various medical facilities.  The privately owned company claims to have close to $2.34 million in debt at the time of their filing.

Documents related to their filing show the company has between $1 million and $10 million in assets. In part of the company’s restructuring efforts, the filing will help to set up a compensation fund for the victims; it may also help the company pay its creditors faster than through separate litigations. NECC shut down in October of this year.

Prior to the meningitis outbreak, NECC had other issues dating back to the late 1990′s after beginning operations.  Complaints about the pharmacy were made as time moved on and documents related to the complaints eventually lead to the steroid shots that were distributed across the country.  For instance, there were reports of blank prescriptions being handed out and sterilization processes were found to be inadequate.



About Reed Allmand


Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand


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