Company being sued for products liability declares bankruptcy

As one Seattle attorney has discovered, pursuing compensation from manufacturers of defective products can become especially difficult when these companies claim to be cash strapped. Companies sometimes file for bankruptcy. This may mean injured individuals and their attorneys will have to find other parties that they can hold accountable in products liability matters.

We’re seeing this right now concerning the east coast New England Compounding Center said to be responsible for the distribution of tainted steroids. Allegedly as a result of the taking of these steroids, around 750 people have suffered fungal meningitis or other serious maladies and 64 people have died. While damages could be in the amount of hundreds of millions of dollars, the compounding company has since filed for bankruptcy.

The process for recovery under such circumstances can take years. Because of New England Compounding’s pending bankruptcy, attorneys are now considering filing lawsuits against the owners of the pharmacy and other companies belonging to these same owners. At the same time, there may still be profits made by New England Compounding that can be recovered by victims of the steroid vaccinations as well.

In any case, these legal strategies may or may not prove to be successful. These other companies pursued will do everything they can to resist being hauled into such a lawsuit. Plaintiff attorneys will also have to negotiate with a large number of parties to see if a settlement can be reached out-of-court.

Though claims are being made for large sums of money, it will have to be divided up among a number of injured victims. The compensation will also have to cover medical expenses, lost wages and a large number of other costs. Competent legal representation for the victims is thus essential.

Source: The Boston Globe, “Victims of tainted drug face long wait for relief,” Todd Wallack, Oct. 2, 2013