Monday, July 14, 2014

Jul 14, 2014, 11:29pm EDT Judge affirms $100 million settlement with New England Compounding Center; NECC partners Barry Cadden, Lisa Cadden, Carla Conigliaro and Greg Conigliaro will pay $47.5 million into a settlement fund.

  

Reporter- Boston Business Journal
A Massachusetts bankruptcy judge has approved a $100 million settlement with New England Compounding Center nearly two years after the company’s tainted steroids were injected into patients throughout the U.S.
The decision was a welcome conclusion, said Bill Baldiga, the managing director of Brown Rudnick’s litigation and restructuring department, who led a team of the firm’s attorneys to represent the creditors committee, which includes victims, in the bankruptcy.
“The judge (U.S. Bankruptcy Court Judge Henry J. Boroff) made findings that it was very much, if not, (the best solution). He said, ‘If this isn’t the best deal available, it’s certainly a very fair one,’” Baldiga said. “That’s how everyone feels. You never know what could happen with litigation.”
A master plan detailing the settlement distribution will likely be filed by August, Baldiga said. In it, attorneys will lay out how both creditors and victims will be paid. The plan also intends to release NECC partners from future litigation.
As was detailed in initial settlement filings, NECC partners Barry Cadden, Lisa Cadden, Carla Conigliaro and Greg Conigliaro will pay $47.5 million into a settlement fund.
Ameridose and other NECC insurers will pay a total of $28.9 million into the fund. Additionally $16 million from federal tax refunds, originally paid by NECC partners for profits derived from ownership, will be refunded by the federal government to the settlement total.
Creditors and victims will also receive 75 percent of the sale of Ameridose and several other affiliated companies.
“It’s going to be very close if not over $100 million,” Baldiga said.

read page two here

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