Fox News reports that the New England Compounding Center (NECC), linked to the deadly fungal meningitis outbreak affecting the country, filed for Chapter 11 bankruptcy on Christmas Eve.
NECC is currently facing 130 lawsuits and 270 injury claims from people claiming to be injured by tainted steroid shots. The pharmacy is based in Framingham, Massachusetts.
According to Fox News, the bankruptcy will shield the company from the threat of creditor lawsuits while it establishes the funds to help pay for victim lawsuits.
“The number of lawsuits and demands is rising on a daily basis,” the bankruptcy filing read, according to Fox News. “The sheer volume and wide geographic distribution of cases–bringing the prospect of chaotic, conflicting and value-destroying pretrial orders and remedies–has necessitated commencing this case at this time.”
Fox News reported that attorney Kimberly Dougherty, whose firm represents 30 plaintiffs, said NECC lawyers have said they intend to “do the right thing” for outbreak victims. “We are hopeful the defendants mean what they say,” Dougherty said to Fox. “If they do mean that, we can all work together and resolve these things as quickly as we can.”
Chapter 11 bankruptcies allow businesses to remain in control of their operations while searching for investors or buyers. Individuals struggling financially can file for Chapter 13 or Chapter 7 bankruptcy, which allows you to discharge debts like credit card debt and medical bills.
Often, bankruptcy is the best way to dig out of a financial hole. Filing for bankruptcy allows you to discharge unsecured debts like credit card debt and medical bills. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.