IBJNews

Settlement seeks $100M fund for meningitis victims

Back to TopCommentsE-mailPrintBookmark and Share

A settlement filed with a federal bankruptcy judge would create a fund of more than $100 million to compensate victims of a nationwide meningitis outbreak linked to a Massachusetts pharmacy, lawyers said Tuesday.

The outbreak, blamed on a tainted steroid produced by the New England Compounding Center, sickened more than 750 people in 20 states, the Centers for Disease Control and Prevention said; 64 people died. The company surrendered its license after the 2012 outbreak, which hit Michigan, Tennessee and Indiana the hardest, and later filed for bankruptcy.

Indiana saw about 80 cases of illness from the steroid and at least 10 deaths.

The settlement, which must be approved by Judge Henry Boroff, was reached between the owners of the company and court-appointed bankruptcy trustee Paul Moore. It calls for the company's owners to pay $50 million into the fund, with its insurers contributing another $25 million.

The agreement would allow the owners to seek $20 million in tax refunds, which also would be contributed to the fund, along with the proceeds of the proposed sale of an affiliated company, Ameridose, bringing the total of the fund to more than $100 million.

Attorney Thomas Sobol, representing victims who sued the Framingham-based compounding pharmacy, said the settlement is "another important step in a frustratingly long process to get fair compensation to hundreds of victims of the meningitis outbreak."

Sobol said he hoped the court would approve the plan by the end of the year, with distributions to victims beginning in early 2015.

"There was unimaginable human death and suffering that cannot be compensated for in money no matter how much it would be," he added.

The money would be distributed among families of those who died, those who sustained serious injuries after being injected with the steroid and other creditors. The victims developed fungal meningitis, an inflammation of the lining of the brain and spinal cord, or other infections.

The settlement was filed nearly five months after lawyers reached an agreement in principal.

Moore said the objective of the negotiations was to resolve claims against the company without lengthy court proceedings, and he praised shareholders for their commitment to reaching a settlement that would benefit victims.

A group of shareholders, in a statement, acknowledged that no amount of money could adequately compensate the families.

"This will bring hope to the lives of so many victims who lost loved ones and those who still are suffering the consequences from this horrible disaster," said Anne Andrews, a California attorney who served as co-chair of a committee representing unsecured creditors of the company.

No criminal charges have been lodged in the case. The company's owners have denied wrongdoing or liability.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. why oh why does this state continue to elect these people....do you wonder how much was graft out of the 3.8 billion?

  2. i too think this is a great idea. I think the vision and need is there as well. But also agree with Wendy that there may be better location in our city to fulfill this vision and help grow the sports of hockey and figure skating in Indy. Also to help further develop other parts of the city that seem often forgotten. Any of the other 6 townships out side of the three northernmost could benefit greatly from a facility and a vision like this. For a vision that sounds philanthropic, the location is appears more about the money. Would really like to see it elsewhere, but still wish the development the best of luck, as we can always use more ice in the city. As for the Ice growth when they return, if schedules can be coordinated with the Fuel, what could be better than to have high level hockey available to go see every weekend of the season? Good luck with the development and the return of the Ice.

  3. How many parking spaces do they have at Ironworks? Will residents have reserved spaces or will they have to troll for a space among the people that are there at Ruth Chris & Sangiovese?

  4. You do not get speeding ticket first time you speed and this is not first time Mr.Page has speed. One act should not define a man and this one act won't. He got off with a slap on the wrist. I agree with judge no person was injured by his actions. The state was robbed of money by paying too much rent for a building and that money could have been used for social services. The Page family maybe "generous" with their money but for most part all of it is dirty money that he obtained for sources that are not on the upright. Page is the kind of lawyer that gives lawyers a bad name. He paid off this judge like he has many other tine and walked away. Does he still have his license. I believe so. Hire him to get you confiscated drug money back. He will. It will cost you.

  5. I remain amazed at the level of expertise of the average Internet Television Executive. Obviously they have all the answers and know the business inside and out.

ADVERTISEMENT