Triad Group and H&P Industries have filed for Chapter 11 bankruptcy protection after the deaths of several people were linked their contaminated alcohol wipes.
An attorney for the companies said in an email that “The litigation involving the alcohol prep pads has created somewhat of a feeding frenzy.” He said the goal of both companies is to restructure “and come out of bankruptcy,” NBC News reports.
Nearly a dozen lawsuits have been filed against the companies alleging serious illness and death were caused by the contaminated wipes, including a lawsuit filed when 2-year-old Harrison Kothari died after becoming infected with the Bacillus cereus bacteria linked to the wipes. An investigation by the Journal Sentinel had found that the FDA knew about problems occurring at the companies but had done nothing about them for more than 10 years.
In January, both companies issued a recall of all alcohol wipe prep pads, and closed their doors. Both Triad and H&P will remain closed under “the terms of a federal consent decree” that prevents them from manufacturing or selling any products. They will have to seek FDA approval before they can resume production.