Monday, September 1st11.8°C
22736
22642

Settlement calls for $100 million fund for victims of nationwide meningitis outbreak

BOSTON - 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.

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.

The Canadian Press


Read more Business News

20759


Recent Trending




Today's Market
S&P TSX15625.73+67.561
S&P CDNX1023.991.62
DJIA17098.4518.88
Nasdaq4580.271+22.577
S&P 5002003.37+6.63
CDN Dollar0.9210+0.0016
Gold1281.70-2.1001
Oil95.96+1.29
Lumber349.60+2.60
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.0750.00
Russel Metals36.48+0.09
Copper Mountain Mining2.93+0.02
Colorado Resources0.180.00
ReliaBrand Inc0.10+0.001
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.245-0.005

 



23057

FEATURED Property
1919561680 Old Meadows Road, Kelowna
2 bedrooms 2 baths
$293,900
more details
image2
Click here to feature your property
Please wait... loading


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...

_








Member of BC Press Council


22810