By Tim McLaughlin
BOSTON (Reuters) - The bankruptcy estate of the pharmacy linked to a deadly U.S. meningitis outbreak plans to battle nearly 30 states to preserve its right to redeem several million dollars worth of insurance policies for creditors.
The insurance policies are key assets in New England Compounding Center's bankruptcy estate.
Paul Moore, the trustee for NECC's
bankruptcy estate, requested court approval to hire Collora LLP, a
Boston law firm known for its high-profile defense work, according to
documents filed on Friday. Collora would battle pharmacy board
regulators from at least 28 states and contend with an ongoing,
previously disclosed investigation by the U.S. Justice Department,
according to the trustee.
Creditors in the bankruptcy include the victims of the
outbreak, court records show. Their claims, however, are much larger
than NECC's assets, which have been listed at between $1 million and $10
million.
In January, U.S.
Bankruptcy Judge Henry Boroff temporarily restricted NECC's owners from
selling their luxury homes or spending up to $21 million they received
last year in salary and shareholder distributions. The Official Committee of Unsecured Creditors, which represents meningitis victims, has said it would like to claw back that money for the bankruptcy estate.
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