New England Compounding Pharmacy Inc., the Mass. pharmaceutical company blamed for a nationwide meningitis outbreak, filed for bankruptcy protection to deal with lawsuits filed against it.
More than 30 people died and 490 were injured after the company shipped fungus-tainted drugs to customers throughout the U.S., according to the Centers for Disease Control and Prevention. The company plans to establish a fund under Chapter 11 of the U.S. Bankruptcy Code to compensate individuals and families affected by the outbreak.
The Framingham-based company listed both assets and debt of $1 million to $10 million in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Boston.
New England Compounding's "goal is to provide a greater, quicker, fairer payout to its creditors than they could achieve through piecemeal litigation," the company said Friday in a statement.
Under bankruptcy law, all litigation against a company or individual who seeks protection is put on hold while the case is pending. A judge can grant a request to allow the claims to proceed outside bankruptcy court in some instances.