$145 Million OK'd for Outbreak Victims

By Walter F. Roche Jr.

A total of $145.6 million in settlement claims have been approved for payment to victims of a deadly 2012 fungal meningitis outbreak, according to a report filed today by a court appointed trustee.
The claims data was included in a 20-page annual report from Lynne F. Riley filed today in U.S. District Court in Boston, Mass.
The report covers most but not all of the amounts awarded to outbreak victims. Not included because they were administered separately are claims paid to more than 100 victims of the outbreak who were injected with fungus laden steroids at clinics in Tennessee.
According to Riley's report 2,353 claims were filed for payment from a national settlement fund and 2,027 were approved for payment. Actual payments have been made to 1,963. In fact all but seven of the 1,963 have received a second payment.
The total payout from the national fund is $96.6 million, according to the report.
In addition to the national settlement distributions totaling $48.9 million has been approved for payment to victims from settlements with clinics where those victims were injected with the tainted steroids.
Nineteen victims have been approved for payment from High Point Surgery, a North Carolina clinic. Forty seven claims have been approved for payment from a settlement with Inspira Health Network, based in New Jersey. Those payments total $12.1 million.
Claims filed by 181 victims have been approved from a settlement with Insight Imaging in Virginia. Those payments total $34.2 million, according to Riley's report.
Most but not all of the approved claims have actually been paid. For instance of the 181 approved claims against Insight, four have yet to be distributed because necessary paperwork has yet to be submitted.
Riley reported that attorneys for the approved claimants who still need to submit additional information have been reminded of that need.
Other items in the report include various expenses incurred during the 12 month period ending May 31 of this year. They include $41,898 in accounting fees and $17,318 paid to the Duane Morris law firm.
Riley reported that victims will also receive a third distribution sometime in 2020 or 2021. The exact amount will depend on tax refunds that are due to the owners of the New England Compounding Center, the company blamed for the 2012 outbreak.
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