Bankrupt pharmacy linked to meningitis outbreak wants to redeem insurance policies to pay creditors

Many states want the pharmacy’s license revoked, which would keep it from redeeming the policies

The bankruptcy estate of the pharmacy that allegedly caused a deadly meningitis outbreak in the U.S. last year wants to be able to redeem its insurance policies, worth several million dollars, to pay off debts to its creditors.

The New England Compounding Center (NECC) filed for Chapter 11 bankruptcy in December 2012, after fungal meningitis-tainted steroids that it manufactured were linked to an outbreak that killed 53 people and infected hundreds more. Some of the NECC’s creditors are victims of the outbreak.

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