Judge orders freeze of compounding pharmacy owners' assets
BOSTON (AP) - A bankruptcy court judge has frozen the assets of the four owners of a pharmacy blamed for a fatal meningitis outbreak.
The order Friday by Judge Henry Boroff forbids the owners of the New England Compounding Center from spending or moving their assets, except to pay living expenses or legal bills.
The order comes on request of a creditors' committee and applies to owners Barry Cadden, Lisa Cadden, Greg Conigliaro and Carla Conigliaro.
The creditors asked the court to freeze the assets, citing concerns they would be depleted before creditors get paid. The fungal meningitis outbreak is blamed for 44 deaths, and the owners face dozens of lawsuits.
The company claims just $400,000 in net assets, but the creditors committee says $70 million has been paid out to company insiders over the last six years.