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Wed May 7, 2014
Settlement For Meningitis Victims Up For Approval
Victims of a nationwide fungal meningitis outbreak could see more than $100 million in compensation.
The outbreak began in 2012, sickening more than 750 people in 20 states, including Tennessee; 64 people died.
The disease was blamed on tainted steroids from the now-closed New England Compounding Center in Massachusetts. The company's owners have denied wrongdoing and no criminal charges have been fired in the case.
If approved, a settlement would require owners of the company to create a fund of more than $100 million to compensate the victims of the outbreak: the company's owners would pay $50 million; its insurers would pay another $25 million; the owners would be allowed to seek $20 million in tax refunds, which would also go to that fund.
Victims developed fungal meningitis, an inflammation of the lining of the brain and spinal cord, or other infections. The settlement money would be distributed among families of those who died in the outbreak, those who sustained serious injuries after being injected with the steroid, and other creditors.