NECC Insolvency Ruling Will Pave Way For 3rd-Party Suits

Law360, New York (July 25, 2013, 6:16 PM EDT) -- A Massachusetts bankruptcy judge issued a key ruling Wednesday that the New England Compounding Center, which was behind a nationwide meningitis outbreak, was insolvent when it filed for Chapter 11 bankruptcy, a decision that will enable liability and wrongful death suits against third parties. 

On July 17, a committee representing outbreak victims urged the court to declare NECC insolvent, as, under several state laws, the company must receive the declaration before victims can pursue claims against health care providers and others who distributed the tainted products...
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