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 The New England Compounding Center also sickened about 750 people
across the United States three years ago by shipping steroids
typically used to treat back pain despite being aware that the drugs
were contaminated with fungal meningitis, according to federal
prosecutors.
The payout will include about $18 million seized from the
Framingham, Massachusetts-based company's founders and its chief
pharmacist, one of two people charged in December with second-degree
murder for his role in the scheme.
The bankruptcy reorganization plan was approved by U.S. Bankruptcy
Court Judge Henry Boroff.
The company, also known by the acronym NECC, shut down in October
2012 and declared Chapter 11 bankruptcy two months later.
"Victims can never be compensated adequately for the suffering
inflicted on them by NECC, but this case does demonstrate how the
law, and particularly bankruptcy law, can be used to bring some
justice to people seriously injured by a company's misconduct," said
David Molton, a lawyer who advised NECC's creditors committee.
The case led to strict new U.S. regulations on compounding
pharmacies, which mix drugs but had previously been treated with a
lighter hand than registered drug manufacturers. Deaths of patients
occurred in Florida, Indiana, Maryland, Michigan, North Carolina,
Tennessee and Virginia.
A total of 14 people associated with the company now face criminal
charges.
They include pharmacists Barry Cadden, who had a minority ownership
stake, and Glenn Chin, who were both charged with murdering 25
people. Others charged include majority owner Carla Conigliaro, her
husband Douglas Conigliaro, and his brother Greg Conigliaro, who
were each charged with conspiracy.
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Cadden, Chin and the three Conigliaros have pleaded not guilty to
all charges. A date has not yet been set for their trial in Boston
federal court.
NECC, located about 20 miles (32 km) west of Boston, started out as
a small business owned by members of Cadden's family and grew into a
bulk-sales company that shipped to hospitals and clinics across the
United States. The company generated about $32 million in revenue
for the first 10 months of 2012, according to court papers.
(Reporting by Scott Malone; Editing by Will Dunham)
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