Judge to appoint trustee in Mass. pharmacy case

Updated at: 01/24/2013 10:37 AM
By JAY LINDSAY

(AP) SPRINGFIELD, Mass. - A Massachusetts judge has agreed to appoint an independent trustee to oversee the bankruptcy of the compounding pharmacy linked to a nationwide meningitis outbreak.

Judge Henry Boroff heard arguments in the case Thursday at U.S. Bankruptcy Court in Springfield.

A steroid produced by the Framingham-based New England Compounding Center has been linked to a fungal meningitis outbreak that’s killed 44. The company filed for Chapter 11 bankruptcy in December, saying the purpose of the filing was to establish a compensation fund for victims.

The company at first opposed an independent trustee, saying it would delay progress toward establishing the fund. Lawyers on Thursday dropped objections, saying the company did not want a battle with creditors.

Creditors also were given permission to file a claim to freeze the company’s assets.

(Copyright 2013 by The Associated Press. All Rights Reserved.)