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Home » Turner Law Offices Blog » TN Pharmacy Board Reduces Claim in Upcoming Bankruptcy Case Caused by Outbreak

TN Pharmacy Board Reduces Claim in Upcoming Bankruptcy Case Caused by Outbreak

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A nationwide fungal outbreak caused by contaminated medications issued by the New England Compounding Center led to the deaths of many patients across the US, leading to NECC filing for bankruptcy to repay the damages. The Tennessee Pharmacy Board, in a recent agreement, has reduced its claim against NECC from $10 million to $5 million, as well as dropping other pending actions against NECC and its part-owner and chief pharmacist, Barry Cadden.

In October of 2012, a fungal meningitis outbreak was reported in the United States, and the US Centers for Disease Control and Prevention traced the source back to the New England Compounding Center in Framingham, Massachusetts. The outbreak was caused by fungal contamination in three lots of medication used for epidural steroid injection, methylprednisolone acetate. The end result of the outbreak led to 751 patients being sickened by the injections, and, out of that group, the deaths of 64 patients. In Tennessee, 153 patients were affected by the contamination, leading to 16 deaths of Tennessee residents.

Since that time, around 3,200 claims have been field in the bankruptcy case to seek compensation and reparation from the contaminated drugs.

The Tennessee Pharmacy Board recently voted to accept a settlement agreement in the case, reducing their claim to $5 million, halving their original claim of $10 million. The reduction in the claim is subject to the reduction based on similar cases filed by other states, which was proposed in order to keep NECC from incurring penalties and fines greater than the settlement amount.

The settlement will end what could have been a prolonged case while also ensuring that the patients will receive the full amount they deserve. Paul Moore, the bankruptcy trustee, states that the settlement “is fair and equitable and decidedly in the best interests of NECC, its creditors and its estate.”

Any compensation gained from the bankruptcy case will be first prioritized to the families harmed by the outbreak, and then any other recovery on NECC’s part would go toward repaying the pharmacy board and Health Department for expenses paid in investigating the outbreak.

The bankruptcy was filed in 2012, and the case has yet to be fully finalized.

If you are undergoing bankruptcy, or may be considering bankruptcy in order to protect your assets, call us today to speak with an experienced Tennessee bankruptcy attorney. Bankruptcy is a long, complicated process, and your best course of action would be to have someone on your side who can navigate the complicated laws.

Call 615-259-2660

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