Monday, August 15, 2016

Tort Trustee Opposes Fund Release Motions

By Walter F. Roche Jr.

The trustee of the $200 million victims' fund in the fungal meningitis litigation is asking a judge to deny three motions that would, if granted, force the quick release of funds to victims within 30 days.
In a motion filed on the eve of a key hearing, Lynne Riley, the trustee, argued that approval of the motions would be counterproductive and could result in a smaller amount of money being available for victims.
"The requested relief would have the counterproductive effect of delaying (not expediting) distributions and could diminish tort trust assets available to plaintiffs," her motion states.
Riley said that were the money to be distributed immediately the victims' fund could be depleted by claims for damages from those who have liens against the trust.
"The tort trustee has efficiently and effectively supported the Plaintiffs' Steering Committee and lead counsels efforts to globally resolve the public and private liens and preserve opt out for claimants," the motion states.
The filing comes just ahead of tomorrow's hearing before U.S. District Judge Rya Zobel who has agreed to hear argument in her Boiston, Mass. courtroom for the release of funds to victims within 30 days.
Riley's arguments echoed concerns expressed by lead counsel for plaintiffs, who also have urged Zobel to deny the motions.
She also stated that some victims can still expect to get payments before the end of the month.
Lawyers for victims from Virginia, Tennessee, Indiana and Michigan filed the motions for immediate release citing the fact that victims have been waiting nearly four years for some compensation.
The outbreak caused by fungus laden steroids sickened 778 patients, killing 77 of them.


  1. What about people with no liens? Seems to me there are probably some right?

  2. Release all of our money. This is getting to be quite old! Almost 4years. This has been the worst 4yrs of my life. Give Medicaid, Medicare and private insurances their lien and give us what we are supposed to have left. We all have bills to pay.

  3. Hi all , I would check with some legal aid, or attorney. I didn't think there were any liens on mine. I was self pay health insurance, and for some reason blue cross blue shield of Michigan, feels that they should be repaid. According to my attorney, it's in the fine print !! Myself never late, never any gap in insurance coverage, self pay. In addition at the time my health insurance was, about 60% of my gross income. ( had the best plan at the time. Or so I thought )
    Thanks for the updates