Mass. judge freezes pharmacy owners' assets

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Associated Press

Posted on January 26, 2013 at 5:03 AM

Updated Saturday, Jan 26 at 11:01 AM

BOSTON (AP) — A bankruptcy court judge has frozen the assets of the owners of a Massachusetts pharmacy blamed for a deadly meningitis outbreak.

Judge Henry Boroff's order Friday at a hearing in Springfield forbids the owners of the New England Compounding Center from spending or moving their assets, except to pay living expenses or legal bills. His written order is expected Monday.

The courtroom order came on request of a creditors' committee and applies to owners Barry Cadden, Lisa Cadden, Greg Conigliaro and Carla Conigliaro. The committee worried the owners' asset would be further depleted before creditors are paid.

The meningitis outbreak is blamed for 44 deaths. The owners face dozens of lawsuits.

The Framingham-based company claims $400,000 in net assets. It filed for bankruptcy in December, saying it wanted to set up a compensation fund for victims.

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