Compounding Pharmacy Files for Bankruptcy Following Fungal Meningitis Outbreak

The New England Compounding Center (NECC) has filed for bankruptcy. Following a scandal which left them unlicensed and responsible for injuries to over 600 people, the company has shut its doors for good. To provide relief for the 39 people who died and 600 injured patients, the company intends to set up a fund to distribute funds evenly among injured patients rather than enduring litigation.

With between $1 million and $10 million in assets and an estimated $2 million in debts, the amount of relief the company is offering to patients appears to be quite small. With 39 lives cut tragically short by their tainted products, it seems unfathomable that patients would get so little.  Let's do the math here: assuming the company has $8 million to offer 600 patients in relief, that equals to a little over $13,000 per person. That's not enough to pay for hospital bills and expensive long term care let alone to compensate families for the loss of their loved ones.

The Dangers of Fungal Meningitis

To the over 600 patients who contracted fungal meningitis, these consumers were faced with a particularly dangerous and nasty disease that could cause the following:

  • weakness
  • loss of sensation
  • abnormal body movements
  • swelling in the brain
  • hearing loss
  • abnormal posture
  • excessive blood clotting
  • danger of strokes
  • seizures
  • gangrene of the limbs
  • death
Fungal meningitis is treatable with long courses of antibiotics.  However, as was the case in this outbreak, patients faced significant resistance to the drugs and reoccurring outbreaks.  Patients did not experience a marked decrease in risk after treating their initial symptoms. 

If You Have Been Injured

If you suffered injuries at the hands of this compounding pharmacy, you should consult a skilled personal injury and product liability attorney to determine your next steps.  Patients may want to pursue another course of action and should discuss this with a skilled attorney instead of hastily accepting something.