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Settlement Seeks $100M Fund For Meningitis Victims

Settlement Seeks $100M Fund For Meningitis Victims

CREATED May 6, 2014

BOSTON (AP) - A settlement has been reached that could result in a more than $100 million fund for victims of a nationwide meningitis outbreak linked to a Massachusetts compounding pharmacy.

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

The settlement, which must be approved by a judge, calls for NECC's owners to pay $50 million into the fund, with insurers contributing another $25 million. Lawyers said tax refunds and the sale of an affiliated company would bring the total to above $100 million.

Federal officials said the outbreak, blamed on a tainted steroid, sickened about 750 people in 20 states, with 64 deaths.

Thomas Sobol, an attorney representing victims, called the settlement an important step toward fair compensation.

(Copyright 2014 The Associated Press. All rights reserved.)