Pharmacy Behind Meningitis Outbreak to Pay $100M
New England Compounding Center to set up fund for victim compensation
By Newser Editors and Wire Services
Posted Dec 24, 2013 1:51 PM CST
In this Oct. 16, 2012 file photo, a Food and Drug Administration Agent stands at the doorway of New England Compounding Center in Framingham, Mass., as investigators work inside.   (AP Photo/Bill Sikes, File)

(Newser) – The pharmacy most prominently linked to last year's national meningitis outbreak has reached a preliminary agreement on a settlement that would require it to create a $100 million victim compensation fund, attorneys for the company's creditors announced today. The Massachusetts-based New England Compounding Center has already given up its license and declared bankruptcy amid a flood of lawsuits spinning out of the outbreak.

The settlement was reached between the creditors, the bankruptcy trustee, and the company's owners and insurers. A federal investigation is ongoing, but in more than a year it hasn't produced any criminal charges. The company's owners said in a press release that despite creating the fund it still denies any liability or wrongdoing. About 750 people in 20 states developed fungal meningitis or other infections due to the epidemic; 64 have died. Victims will have until Jan. 15 to file for compensation from the fund.

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Showing 3 of 9 comments
user99
Dec 25, 2013 10:57 PM CST
If they are still in business $100M wasn't enough
okaragozian
Dec 25, 2013 6:40 PM CST
In China, the owners of the company who accidentally, or otherwise, poisoned baby formula were lined up and publicly shot by firing squad. The rich get away with murder. 64 people dead and just some fines will be paid - this is justice? America, what a country!?
LibertyReloaded
Dec 25, 2013 12:33 AM CST
They should be put out of fkn business at the least, this is bullshit. Let them burn for what they've done.