Settlement seeks $100M fund for meningitis victims

May 6, 2014 by Bob Salsberg

A settlement that could result in a $100 million fund for victims of a nationwide meningitis outbreak linked to a Massachusetts pharmacy has been reached.

The agreement between the owners and insurers of New England Compounding Center and a court-appointed bankruptcy trustee was filed Tuesday with a U.S. bankruptcy court.

The must be approved by a judge. It calls for the pharmacy's owners to pay $50 million into the fund, with insurers contributing another $25 million. Lawyers say and the sale of an affiliated company would push the total above $100 million.

The outbreak was blamed on a tainted steroid. Federal official say it sickened 750 people in 20 states, with 64 deaths. Michigan, Tennessee and Indiana were hit the hardest.

An attorney representing victims calls the settlement an important step toward fair compensation.

Explore further: $100 mln deal agreed over US meningitis outbreak

Related Stories

$100 mln deal agreed over US meningitis outbreak

December 24, 2013

The owners and insurers of a bankrupt pharmacy at the center of a deadly US meningitis outbreak have reached a tentative agreement to pay more than $100 million to compensate victims, US media reported Tuesday.

Senate questions pharmacy boards after outbreak

November 19, 2012

(AP)—A Senate committee investigating a deadly outbreak of meningitis wants to know how regulators in all 50 states oversee specialty pharmacies like the one that triggered the illness.

Recommended for you

Preliminary study suggests possible new treatment for MS

April 20, 2017

A small, preliminary study may show promise of a new type of treatment for progressive multiple sclerosis (MS). Results from the first six people enrolled in the phase 1 study, a study designed to enroll 10 people, are being ...

A promising target for kidney fibrosis

April 20, 2017

When the kidneys - vital organs for filtering the body's entire blood supply - become injured, it can set in motion an unfortunate chain of events that leads to a decline in health. Sometimes, in response to chronic injury, ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.