Mecta Corporation Files For Chapter 11 Bankruptcy
Article summarizing filings.
On September 30, 2021, ECT device manufacturer Mecta Corp. filed chapter 11 bankruptcy amid lawsuits hindering their liability insurance eligibility.
Financial pressure from combined lawsuits and lack of insurance led to the discontinuation of the SpECTrum device On September 1st, 2021, according to the Debtors.
Quotes from Balance Point and MECTA First Day Declaration
All of the pending and asserted claims relate to the Debtors’ SpECTrum device. To date, MECTA has successfully countered these litigation attempts, without significant settlements or jury verdicts. However, these lawsuits (which continue to arise as recently as last month) have placed tremendous financial pressure on the Debtors.
Most significantly, the Debtors have been unable to obtain products liability insurance to cover the SpECTrum device since June, and as such, have had no choice but to discontinue manufacturing and servicing the SpECTrum device as of September 1, 2021.
Realizing that the Debtors are exposed on account of the SpECTrum devicesBalance Point and MECTA First Day Declaration
without insurance, and recognizing that they can no longer afford to respond to manufactured claims on an individual basis across the United States, the Debtors had no choice but to explore options for achieving an orderly and global resolution of claims relating to SpECTtrum devices. Additionally, the uncertainty of associated revenue from the ∑igma™ devices further prompted the Debtors to expeditiously consider options.
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Visit our action page to find convenient links to your country’s medical adverse reporting system.