On May 6, 2014, a proposed $100 million settlement was filed in the U.S. Bankruptcy Court in Boston, Massachusetts regarding the claims of 3,300 claimants arising out of the allegedly contaminated steroid injections manufactured by the New England Compounding Center (“NECC”) that was located in Framingham, Massachusetts.
NECC manufactured steroid injections that were allegedly contaminated with black mold that were then sent to medical facilities in at least 23 U.S. states. The contaminated steroid medications allegedly caused patients who received the contaminated epidural steroid injections to become infected with fungal meningitis during 2012, which allegedly resulted in the deaths of 64 people and injured over 750 people in 20 U.S. states.
The proposed settlement was reached in December 2013 among the former owners of NECC, NECC’s insurance companies, other NECC-related entities, the bankruptcy trustee for NECC, and the attorneys representing the claimants. The proposed settlement has to be approved by the bankruptcy judge. If approved, it is anticipated that settlement payments will be made to the claimants beginning in 2015.
The amount of the settlement proceeds that each claimant will receive has yet to be determined but will be based in part upon in which category of similar injuries each claimant will be placed.
The former owners of NECC will contribute in excess of $50 million towards the settlement. NECC’s insurance companies will pay $25 million. Other former officials associated with NECC will contribute $10 million. A NECC affiliate will also contribute to the settlement.
NECC recalled its products in October 2012. NECC filed for bankruptcy in December 2012 after personal injury claims against it began flooding in. The cases were consolidated as multidistrict litigation in 2012.
The bankruptcy case is In re: New England Compounding Pharmacy Inc. Products Liability Litigation, MDL No. 2419, U.S. Bankruptcy Court, Boston.
In reference to the proposed $100 million settlement, the bankruptcy trustee for NECC stated, “The commitment from the outset of the shareholders of NECC and their families to make a substantial contribution to a fund for those who died or suffered significant injuries as a result of the outbreak resulted in an expeditious consensual agreement with them.”
It is unimaginable to us that patients suffering from back pain or other symptoms are offered the opportunity for relief from their substantial suffering by undergoing epidural steroid injections that turn out to have been contaminated during the manufacturing process with a dangerous and deadly contaminate. Little did these patients who received the contaminated steroid injections suspect that they would contract the rare but serious disease, fungal meningitis, as a result of their injections, with their lives hanging in the balance.
If you or a loved one may be the victim of a defective drug, a contaminated drug, an ineffective drug, or a bad drug in the United States, you should promptly contact a drug claim attorney in your U.S. state who may investigate your drug claim for you and represent you in a claim against a pharmaceutical company, if appropriate.
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