By Walter F. Roche Jr.
Victims of the 2012 national fungal meningitis outbreak will soon be getting information packets on how to submit their claims to share in a $130-$157 million national trust fund.
Some details of how victims can submit their claims and a tentative schedule for actual payments were spelled out today in a session before U.S. District Judge Rya W. Zobel in federal court in Boston.
Kristen Johnson, one of the attorneys for the hundreds of outbreak victims, said that while she was admittedly being optimistic, victims could begin collecting payments by the end of the calendar year.
She told Zobel that victims will have until Oct. 2 to formally submit claims and then those overseeing the trust fund will be able to determine how a detailed point system will be utilized to determine the value of each claim.
Under a plan already filed with the court points will be allocated based on the severity and length of illnesses suffered by the victims.
The funding for victims will come from owners and insurers of the New England Compounding Center, the defunct Massachusetts firm blamed for the 2012 fungal meningitis outbreak, Johnson said.
She said the funding could jump from $130 million to $157 million, depending on whether anticipated tax refunds materialize.
She said an additional $59 million would be available only to those victims who were injected with fungus tainted steroids at specific clinics in North Carolina, Virginia and New Jersey.
Victims injected at other clinics, like the Saint Thomas Outpatient Neurosurgical Center in Nashville, Tenn., will collect a partial settlement from the national trust fund but then have to wait for resolution of any claim filed against the treating clinic.
"All victims will get something by the end of the year," she said.
Johnson noted that despite some initial opposition, ultimately all parties agreed to the plan drawn up by NECC Trustee Paul D. Moore.
Johnson noted that debate is continuing over the schedule and deadlines for gathering evidence from all interested parties in the remaining litigation.
Among other issues is whether the claims of victims will be decided under Massachusetts law or the state laws where the victims were treated.
Johnson noted that Tennessee and some other states have laws that call for the blame to be shared under the concept of comparative negligence.
She also noted that a motion is pending for one Tennessee case to be tried ahead of the others. That case was filed in behalf of Wayne Reed, a disabled Nashville man whose wife and sole caretaker was a victim of the outbreak which took the lives of 76 patients in more than 20 states.
That motion is scheduled to be argued next month.
wfrochejr999@gmail.com
Thursday, May 28, 2015
Wednesday, May 20, 2015
NECC Liquidation Plan Gets Formal Approval
By Walter F. Roche Jr.
As promised a federal bankruptcy judge has given his formal approval to a plan that will provide million of dollars to victims of a 2012 fungal meningitis outbreak that sickened 778 patients, killing 76 of them.
U.S. Judge Henry J. Boroff signed off on the massive plan Wednesday, a day after he promised to do so during a hearing in Springfield, Mass.
The plan will set out the process to distribute funds from the owners of the New England Compounding Center, the firm blamed for the deadly outbreak, affiliated companies, insurance companies and firms that provided services to the defunct Framingham, Mass. drug compounder
Paul D. Moore, the court appointed trustee for NECC, said Wednesday that he remains hopeful funds will be distributed to victims by the end of the current year.
He said distribution of the funds included in the plan will not be dependent on the outcome of separate pending litigation against health care facilities where patients were injected with fungus tainted steroids from NECC.
"Remaining litigation has nothing whatsoever to do with plan distributions," Moore wrote in an email. "Our hope and expectation is, as reported, that distributions will be made, or at least commenced with respect to undisputed claims by year end. These people have waited a long time for some relief."
Under the plan approved by Boroff about $160 million will go into a so-called national fund to be distributed to victims nationwide.
An additional $59.5 million will be available only for those victims who were treated at facilities that agreed to a mediated settlement. The largest amount, some $40 million, will go to victims treated at Insight Imaging in Virginia, while $3.5 million is earmarked for victims treated at a North Carolina clinic and $16 million for those treated at a New Jersey health facility.
Victims who were treated at facilities not participating in the mediation program, including the Saint Thomas Outpatient Neurosurgical Center in Nashville, could first get an award from the $160 million national fund and, then if successful, get a second award from separate pending litigation.
"They will receive their distribution share from the bankruptcy court and then those who filed individual cases will continue to litigate against the clinics," said Nashville attorney Gerard Stranch, who represents Tennessee victims.
That remaining litigation includes dozens of civil suits that have been merged before another federal judge, Rya Zobel, who has scheduled a May 28 status conference on the suits.
wfrochejr999@gmail.com
As promised a federal bankruptcy judge has given his formal approval to a plan that will provide million of dollars to victims of a 2012 fungal meningitis outbreak that sickened 778 patients, killing 76 of them.
U.S. Judge Henry J. Boroff signed off on the massive plan Wednesday, a day after he promised to do so during a hearing in Springfield, Mass.
The plan will set out the process to distribute funds from the owners of the New England Compounding Center, the firm blamed for the deadly outbreak, affiliated companies, insurance companies and firms that provided services to the defunct Framingham, Mass. drug compounder
Paul D. Moore, the court appointed trustee for NECC, said Wednesday that he remains hopeful funds will be distributed to victims by the end of the current year.
He said distribution of the funds included in the plan will not be dependent on the outcome of separate pending litigation against health care facilities where patients were injected with fungus tainted steroids from NECC.
"Remaining litigation has nothing whatsoever to do with plan distributions," Moore wrote in an email. "Our hope and expectation is, as reported, that distributions will be made, or at least commenced with respect to undisputed claims by year end. These people have waited a long time for some relief."
Under the plan approved by Boroff about $160 million will go into a so-called national fund to be distributed to victims nationwide.
An additional $59.5 million will be available only for those victims who were treated at facilities that agreed to a mediated settlement. The largest amount, some $40 million, will go to victims treated at Insight Imaging in Virginia, while $3.5 million is earmarked for victims treated at a North Carolina clinic and $16 million for those treated at a New Jersey health facility.
Victims who were treated at facilities not participating in the mediation program, including the Saint Thomas Outpatient Neurosurgical Center in Nashville, could first get an award from the $160 million national fund and, then if successful, get a second award from separate pending litigation.
"They will receive their distribution share from the bankruptcy court and then those who filed individual cases will continue to litigate against the clinics," said Nashville attorney Gerard Stranch, who represents Tennessee victims.
That remaining litigation includes dozens of civil suits that have been merged before another federal judge, Rya Zobel, who has scheduled a May 28 status conference on the suits.
wfrochejr999@gmail.com
Tuesday, May 19, 2015
Study Finds 124 More Deaths Could Have Resulted from Meningitis Outbreak
By Walter F. Roche Jr.
A newly published study concludes that swift action by state, federal and local regulators may have averted as many as 124 additional deaths in the 2012 fungal meningitis outbreak.
In a report issued today by officials of the U.S. Centers for Disease Control and Prevention, the researchers found that the intensity and occurrence of meningitis cases lessened considerably after the outbreak was made public on Oct. 4, 2012 and multiple regulatory measures were implemented.
"Thousands of public health officials at the federal, state and local levels, along with clinicians and administrative staff, worked over many months to respond to this unprecedented outbreak," the report states.
In addition to the deaths averted, the study found that without the intervention of regulators, an additional 153 patients would likely have been stricken with fungal meningitis or a stroke.
According to CDC and federal investigators 178 patients were stricken in the outbreak, while 76 died.
All the deaths and illnesses have been blamed on fungus infested methylprednisolone acetate which was shipped by the now defunct New England Compounding Center to 75 health providers in 23 states.
The researchers said the 2012 public health disaster was "the largest outbreak of fungal meningitis in the United States."
The study focused on three lots of the tainted steroid which were later found to be contaminated with fungus. A total of 17,675 vials were contained in the three lots. By reviewing NECC and other records, the researchers found that 3,150 of those vials were shipped but never administered before an Oct. 4 recall.
The study found that the death rate dropped from 28 percent to 5 percent after the public alarm was sounded on Oct. 4. The data did not include patients who suffered from injection site or joint infections caused by the steroids.
That drop was attributed not only to the recall and widespread public notice, but also to swifter and more aggressive intervention in suspected and confirmed cases of meningitis and stroke caused by meningitis.
"Aggressive public health action resulted in a substantially reduced estimated number of persons affected by this outbreak and improved survival of affected patients," the study states.
While acknowledging that its estimates could either overestimate or underestimate the potential additional victims, the researcher concluded that absent intervention the outcome "could have been far worse."
Reach Walter Roche at wfrochejr999@gmail.com
A newly published study concludes that swift action by state, federal and local regulators may have averted as many as 124 additional deaths in the 2012 fungal meningitis outbreak.
In a report issued today by officials of the U.S. Centers for Disease Control and Prevention, the researchers found that the intensity and occurrence of meningitis cases lessened considerably after the outbreak was made public on Oct. 4, 2012 and multiple regulatory measures were implemented.
"Thousands of public health officials at the federal, state and local levels, along with clinicians and administrative staff, worked over many months to respond to this unprecedented outbreak," the report states.
In addition to the deaths averted, the study found that without the intervention of regulators, an additional 153 patients would likely have been stricken with fungal meningitis or a stroke.
According to CDC and federal investigators 178 patients were stricken in the outbreak, while 76 died.
All the deaths and illnesses have been blamed on fungus infested methylprednisolone acetate which was shipped by the now defunct New England Compounding Center to 75 health providers in 23 states.
The researchers said the 2012 public health disaster was "the largest outbreak of fungal meningitis in the United States."
The study focused on three lots of the tainted steroid which were later found to be contaminated with fungus. A total of 17,675 vials were contained in the three lots. By reviewing NECC and other records, the researchers found that 3,150 of those vials were shipped but never administered before an Oct. 4 recall.
The study found that the death rate dropped from 28 percent to 5 percent after the public alarm was sounded on Oct. 4. The data did not include patients who suffered from injection site or joint infections caused by the steroids.
That drop was attributed not only to the recall and widespread public notice, but also to swifter and more aggressive intervention in suspected and confirmed cases of meningitis and stroke caused by meningitis.
"Aggressive public health action resulted in a substantially reduced estimated number of persons affected by this outbreak and improved survival of affected patients," the study states.
While acknowledging that its estimates could either overestimate or underestimate the potential additional victims, the researcher concluded that absent intervention the outcome "could have been far worse."
Reach Walter Roche at wfrochejr999@gmail.com
NECC Liquidation Plan Gets Final Adjustment
By Walter F. Roche Jr.
A federal bankruptcy judge today agreed to approve a $200 million liquidation plan for the drug compounding firm blamed for a nationwide outbreak of fungal meningitis which killed dozens and sickened hundreds.
U.S. Judge Henry J. Boroff agreed to approve a revised plan to be filed by Paul D. Moore the court appointed trustee of the New England Compounding Center, the firm that shipped fungus tainted steroids to healthcare providers across the country.
Only one objection had been filed against Moore's plan, while dozens of interested parties urged its approval. The $200 million to $220 million amassed in the bankruptcy will go to victims, their survivors and a limited number of creditors of NECC.
Moore said that Boroff agreed to approve the plan after a few changes were ironed out during a morning court session in Springfield, Mass.
The 2012 outbreak killed 76 patients while 778 were sickened overall. Especially hard hit were Michigan, Tennessee, Indiana and Virginia.
Moore said in a prepared statement that his main mission since he was appointed "was to recover as large a sum as possible for the benefit of those who died or suffered serious injuries as a result of this tragic outbreak. "
Also hailing the approval were attorneys for victims and creditors.
Though Moore said he was especially pleased victims will soon receive compensation, the actual awarding of payments could be months or even a year or more away depending on the outcome of hundreds of pending civil trials
The bankruptcy was filed in December of 2012, just a few months after the outbreak became public.
NECC, based in Framingham, Mass., recalled all of its products in the fall of 2012, but by then it was too late for the victims.
The $200 million will come from the owners of NECC, related companies, insurance companies and firms that performed services for the drug compounding firm.
The outbreak, the largest of its kind in U.S. history, led to new federal laws and also sparked some states to tighten oversight of firms like NECC that produce sterile drugs injected into patients.
The money from the bankruptcy will be distributed to victims after their claims are resolved in a separate set of civil suits now being overseen by U.S. District Judge Rya Zobel.
Under orders approved by Zobel the money will be distributed under a point system based on the severity of the illness suffered by the victim.
A hearing on the civil suits is scheduled for later this month.
Reach wfroche999@gmail.com
A federal bankruptcy judge today agreed to approve a $200 million liquidation plan for the drug compounding firm blamed for a nationwide outbreak of fungal meningitis which killed dozens and sickened hundreds.
U.S. Judge Henry J. Boroff agreed to approve a revised plan to be filed by Paul D. Moore the court appointed trustee of the New England Compounding Center, the firm that shipped fungus tainted steroids to healthcare providers across the country.
Only one objection had been filed against Moore's plan, while dozens of interested parties urged its approval. The $200 million to $220 million amassed in the bankruptcy will go to victims, their survivors and a limited number of creditors of NECC.
Moore said that Boroff agreed to approve the plan after a few changes were ironed out during a morning court session in Springfield, Mass.
The 2012 outbreak killed 76 patients while 778 were sickened overall. Especially hard hit were Michigan, Tennessee, Indiana and Virginia.
Moore said in a prepared statement that his main mission since he was appointed "was to recover as large a sum as possible for the benefit of those who died or suffered serious injuries as a result of this tragic outbreak. "
Also hailing the approval were attorneys for victims and creditors.
Though Moore said he was especially pleased victims will soon receive compensation, the actual awarding of payments could be months or even a year or more away depending on the outcome of hundreds of pending civil trials
The bankruptcy was filed in December of 2012, just a few months after the outbreak became public.
NECC, based in Framingham, Mass., recalled all of its products in the fall of 2012, but by then it was too late for the victims.
The $200 million will come from the owners of NECC, related companies, insurance companies and firms that performed services for the drug compounding firm.
The outbreak, the largest of its kind in U.S. history, led to new federal laws and also sparked some states to tighten oversight of firms like NECC that produce sterile drugs injected into patients.
The money from the bankruptcy will be distributed to victims after their claims are resolved in a separate set of civil suits now being overseen by U.S. District Judge Rya Zobel.
Under orders approved by Zobel the money will be distributed under a point system based on the severity of the illness suffered by the victim.
A hearing on the civil suits is scheduled for later this month.
Reach wfroche999@gmail.com
Monday, May 18, 2015
$200 Million NECC Bankruptcy Plan Faces Tuesday Hearing
By Walter F. Roche Jr.
With a 44-item agenda, a key hearing begins at 10 a.m. tomorrow on a $200 million plan that could finally bring some relief to hundreds of victims of a 2012 fatal fungal meningitis outbreak.
The hearing before U.S. Bankruptcy Judge Henry J. Boroff is being held to consider a massive liquidation plan prepared by Paul D. Moore, the court appointed trustee for the New England Compounding Center.
That now defunct Framingham, Mass. firm has been blamed for the outbreak which took the lives of 76 patients across the country. They were among 778 patients sickened with injections of a fungus tainted methylprednisolone acetate.
Some lawyers for the victims or their survivors are hoping the plan will get swift or even immediate approval thus speeding the financial relief to victims. Even with immediate approval, most expect it could be late this year or early 2016 before any checks are issued.
"Hopefully the court will approve the plan and we can start the process of making payments to the victims as soon as possible," said Gerard Stranch, a Nashville attorney representing several victims.
"This is an important step in getting justice for our clients," said Mark Chalos, also a plaintiffs attorney from Nashville.
In one recent filing in support of the plan, Moore noted that victims already have waited 2.5 years and many are facing financial hardships.
Chris J. Tardio, one pf the attorneys for Tennessee clinics being by outbreak victims, said his clients also support Moore's plan "because it requires the real wrongdoers, NECC and its owners and affiliates, to pay plaintiffs."
“Our clients have voted in favor of the Plan because it requires the real wrongdoers, NECC and its owners and affiliates, to pay Plaintiffs. Despite the $200+ million settlement with NECC and others, the Plaintiffs’ lawyers still demand more money from the doctors and nurses who innocently were victimized by NECC and its owners. We continue to vigorously defend those claims,” Tardio wrote in an email.
Moore's plan includes a pot of money from the owners of NECC, insurance companies, firms related to NECC and other firms that performed services for NECC ranging from testing its supposedly sterile products to the companies that designed, built and cleaned the so-called clean rooms where drugs were compounded.
Though the $200 million to $220 million fund total also includes some of the health care providers who injected patients with the fungus tainted steroid, others, like the Saint Thomas Outpatient Neurosurgical Center in Nashville, Tenn. are not.
Saint Thomas chose not to participate in mediation sessions with its attorneys contending the process was flawed.
Once the liquidation plan is in place, Stranch said the priority will be to try to bring the Saint Thomas cases to trial as quickly as possible.
"We are now focused on setting an early trial date so that the victims can have their day in court," Stranch said.
While Stranch and his colleagues have been pushing for trials before the end of the calendar year, lawyers for Saint Thomas and related parties contend that it will take another year before actual trials will be possible.
Tardio, however, said the Saint Thomas clinic and two other Tennessee facilities, were also victims of NECC's wrongdoing. Nonetheless, he added, plaintiffs' lawyers "still demand more money from the doctors and nurses who innocently were victimized."
wfrochejr999@gmail.com
“Hopefully, the Court will approve the plan and we can start the process of making payments to the victims of the Fungal Meningitis outbreak as soon as possible. We are now focused on setting an early trial date with the St. Thomas entities so that the victims can have their day in Court.” Gerard Stranch.
With a 44-item agenda, a key hearing begins at 10 a.m. tomorrow on a $200 million plan that could finally bring some relief to hundreds of victims of a 2012 fatal fungal meningitis outbreak.
The hearing before U.S. Bankruptcy Judge Henry J. Boroff is being held to consider a massive liquidation plan prepared by Paul D. Moore, the court appointed trustee for the New England Compounding Center.
That now defunct Framingham, Mass. firm has been blamed for the outbreak which took the lives of 76 patients across the country. They were among 778 patients sickened with injections of a fungus tainted methylprednisolone acetate.
Some lawyers for the victims or their survivors are hoping the plan will get swift or even immediate approval thus speeding the financial relief to victims. Even with immediate approval, most expect it could be late this year or early 2016 before any checks are issued.
"Hopefully the court will approve the plan and we can start the process of making payments to the victims as soon as possible," said Gerard Stranch, a Nashville attorney representing several victims.
"This is an important step in getting justice for our clients," said Mark Chalos, also a plaintiffs attorney from Nashville.
In one recent filing in support of the plan, Moore noted that victims already have waited 2.5 years and many are facing financial hardships.
Chris J. Tardio, one pf the attorneys for Tennessee clinics being by outbreak victims, said his clients also support Moore's plan "because it requires the real wrongdoers, NECC and its owners and affiliates, to pay plaintiffs."
“Our clients have voted in favor of the Plan because it requires the real wrongdoers, NECC and its owners and affiliates, to pay Plaintiffs. Despite the $200+ million settlement with NECC and others, the Plaintiffs’ lawyers still demand more money from the doctors and nurses who innocently were victimized by NECC and its owners. We continue to vigorously defend those claims,” Tardio wrote in an email.
Moore's plan includes a pot of money from the owners of NECC, insurance companies, firms related to NECC and other firms that performed services for NECC ranging from testing its supposedly sterile products to the companies that designed, built and cleaned the so-called clean rooms where drugs were compounded.
Though the $200 million to $220 million fund total also includes some of the health care providers who injected patients with the fungus tainted steroid, others, like the Saint Thomas Outpatient Neurosurgical Center in Nashville, Tenn. are not.
Saint Thomas chose not to participate in mediation sessions with its attorneys contending the process was flawed.
Once the liquidation plan is in place, Stranch said the priority will be to try to bring the Saint Thomas cases to trial as quickly as possible.
"We are now focused on setting an early trial date so that the victims can have their day in court," Stranch said.
While Stranch and his colleagues have been pushing for trials before the end of the calendar year, lawyers for Saint Thomas and related parties contend that it will take another year before actual trials will be possible.
Tardio, however, said the Saint Thomas clinic and two other Tennessee facilities, were also victims of NECC's wrongdoing. Nonetheless, he added, plaintiffs' lawyers "still demand more money from the doctors and nurses who innocently were victimized."
wfrochejr999@gmail.com
“Hopefully, the Court will approve the plan and we can start the process of making payments to the victims of the Fungal Meningitis outbreak as soon as possible. We are now focused on setting an early trial date with the St. Thomas entities so that the victims can have their day in Court.” Gerard Stranch.
"We look forward to Judge Boroff reviewing the evidence and evaluating the fairness of the proposed settlement. This is an important step in getting justice for our clients. Regardless of the outcome of the hearing, the fight will continue to hold all wrongdoers accountable.” Mark Chalos
Friday, May 15, 2015
As Key Hearing Nears, New Details Emerge on Fatal Outbreak
By Walter F. Roche Jr.
With a key hearing just days away, new details are emerging about the negotiations leading to a $200 million proposed settlement of the bankruptcy of the Massachusetts firm blamed for a nationwide fungal meningitis outbreak.
In a 75-page filing summing up the history of the outbreak and the subsequent court case, Paul D. Moore, bankruptcy trustee of the New England Compounding Center, disclosed details of extensive negotiations with various parties that have agreed to contribute to a trust fund that will provide some relief to hundreds of victims of the 2012 outbreak.
Among the new disclosures is the fact that an inspection of NECC's Framingham, Mass. facilities by attorneys involved in the case was cut short by FBI agents who were involved in the ongoing criminal investigation.
Moore cited the "strict oversight" of the four day inspection by FBI agents.
The filing comes as Bankruptcy Judge Henry J. Boroff is scheduled to preside over a Tuesday hearing on whether to approve the liquidation plan.
According to the filing, claims have been filed in behalf of 3,461victims of the outbreak and the vast majority voted in favor of the plan in balloting ending May 5.
"Many of the personal injury claimants have already waited over 2.5 years for compensation and are suffering substantial financial hardships as a result of the injuries caused by the contaminated methylprednisolone acetate," the filing states.
The brief describes mediation sessions with the contributing parties and details the amount each is expected to provide, including $47.5 million from former owners and officers of NECC.
Only one objection has been filed against the plan. That was filed by the U.S. Trustee who questioned why parties who were not directly contributing to the settlement fund were being granted immunity from further liability.
Moore in his brief said that without the liability waiver, the overall agreement would not have been possible.
State and federal regulators have concluded that fungus laden drugs shipped by NECC to health providers across the country caused the outbreak which sickened 778, killing 76 of them.
Among those contributing to the settlement fund is Unifirst, the firm hired by NECC to clean its clean rooms where the suspect drugs were finally prepared.
"Unifirst," Moore wrote, "repeatedly departed from industry standards and contractual requirements not only failing to accomplish rudimentary clean health standards, but at times exacerbating the unsanitary conditions at NECC."
Unifirst has agreed to provide $30.5 million in the settlement.
Also detailed was a $5 million settlement with an NECC ventilation contractor and a $6.4 million payment from a firm that performed sterility testing for NECC.
The settlement plan includes funding from some but not all of the health care facilities where victims were injected with the fungus tainted steroids.
The High Point Surgery Center in North Carolina and its insurance company have agreed to pay $3.5 million. Some 25 of its patients have filed claims, five of whom were stricken with fungal meningitis.
The owners of the Insight Imaging in Roanoke, Va. and its insurance company have agreed to pay $40 million. Claims have been filed in behalf of 153 of its patients or their survivors. Eight of those patients died. One claim against Insight was already settled in a Virginia court case.
Also agreeing to contribute $16 million was the Inspira Health Network of New Jersey where patients were injected with NECC steroids.
The payments from the health providers will be earmarked for only those victims actually treated at the individual facilities.
Other health facilities, including the Saint Thomas Outpatient Neurosurgical Center in Nashville, Tenn., did not participate in the mediation process and claims against them remain to be resolved.
Calling the proposed settlement "unprecedented," Moore also filed declarations of support from lawyers representing dozens of parties with an interest in the case.
Contact: wfrochejr999@gmail.com
With a key hearing just days away, new details are emerging about the negotiations leading to a $200 million proposed settlement of the bankruptcy of the Massachusetts firm blamed for a nationwide fungal meningitis outbreak.
In a 75-page filing summing up the history of the outbreak and the subsequent court case, Paul D. Moore, bankruptcy trustee of the New England Compounding Center, disclosed details of extensive negotiations with various parties that have agreed to contribute to a trust fund that will provide some relief to hundreds of victims of the 2012 outbreak.
Among the new disclosures is the fact that an inspection of NECC's Framingham, Mass. facilities by attorneys involved in the case was cut short by FBI agents who were involved in the ongoing criminal investigation.
Moore cited the "strict oversight" of the four day inspection by FBI agents.
The filing comes as Bankruptcy Judge Henry J. Boroff is scheduled to preside over a Tuesday hearing on whether to approve the liquidation plan.
According to the filing, claims have been filed in behalf of 3,461victims of the outbreak and the vast majority voted in favor of the plan in balloting ending May 5.
"Many of the personal injury claimants have already waited over 2.5 years for compensation and are suffering substantial financial hardships as a result of the injuries caused by the contaminated methylprednisolone acetate," the filing states.
The brief describes mediation sessions with the contributing parties and details the amount each is expected to provide, including $47.5 million from former owners and officers of NECC.
Only one objection has been filed against the plan. That was filed by the U.S. Trustee who questioned why parties who were not directly contributing to the settlement fund were being granted immunity from further liability.
Moore in his brief said that without the liability waiver, the overall agreement would not have been possible.
State and federal regulators have concluded that fungus laden drugs shipped by NECC to health providers across the country caused the outbreak which sickened 778, killing 76 of them.
Among those contributing to the settlement fund is Unifirst, the firm hired by NECC to clean its clean rooms where the suspect drugs were finally prepared.
"Unifirst," Moore wrote, "repeatedly departed from industry standards and contractual requirements not only failing to accomplish rudimentary clean health standards, but at times exacerbating the unsanitary conditions at NECC."
Unifirst has agreed to provide $30.5 million in the settlement.
Also detailed was a $5 million settlement with an NECC ventilation contractor and a $6.4 million payment from a firm that performed sterility testing for NECC.
The settlement plan includes funding from some but not all of the health care facilities where victims were injected with the fungus tainted steroids.
The High Point Surgery Center in North Carolina and its insurance company have agreed to pay $3.5 million. Some 25 of its patients have filed claims, five of whom were stricken with fungal meningitis.
The owners of the Insight Imaging in Roanoke, Va. and its insurance company have agreed to pay $40 million. Claims have been filed in behalf of 153 of its patients or their survivors. Eight of those patients died. One claim against Insight was already settled in a Virginia court case.
Also agreeing to contribute $16 million was the Inspira Health Network of New Jersey where patients were injected with NECC steroids.
The payments from the health providers will be earmarked for only those victims actually treated at the individual facilities.
Other health facilities, including the Saint Thomas Outpatient Neurosurgical Center in Nashville, Tenn., did not participate in the mediation process and claims against them remain to be resolved.
Calling the proposed settlement "unprecedented," Moore also filed declarations of support from lawyers representing dozens of parties with an interest in the case.
Contact: wfrochejr999@gmail.com
Thursday, May 14, 2015
Claim for Nevada Youth Won't Be Barred In Drug Compounding Case
By Walter F. Roche Jr.
Court documents filed Thursday state that the claims of a Nevada woman, whose son died after treatment with a suspect drug, will not be barred from filing a claim against the bankrupt Massachusetts drug compounding firm that produced the drug.
The filings came in response to a previous claim, since withdrawn, that procedures established in the bankruptcy settlement would bar the claim of Katrina Eldreth, whose son died after treatment with a suspect drug at a Las Vegas hospital.
The drug was produced by the New England Compounding Center, the firm blamed for a 2012 nationwide outbreak of fungal meningitis that killed 76 patients across the country.
Though most of the known victims were treated with a spinal steroid, methylprednisolone acetate (MPA), Eldreth's son was treated with a drug used to stop the heart from beating during heart surgery.
In a filing last week, Eldreth's lawyer said that the rules would bar her claim because the lot of drugs the 3-year-old was treated with was not MPA and had not been tested by federal officials.
However, Frederic Ellis, a Massachusetts attorney who represents several victims filed a declaration Thursday stating that the rules would not bar the Eldreth claims.
"The compensation program provides claimants who were exposed to other products the same opportunity to recover as claimants who received an injection of methylprednisolone acetate from one of the three contaminated MPA lots," Ellis wrote.
He added that claimants could provide circumstantial evidence to back their claim for any drug product produced by NECC.
"Circumstantial evidence is admissible to prove both exposure and causation," the brief states.
Ellis noted that additional proof would be needed to assure that any infection was not due to another cause.
Ellis stated that, in fact, some 25 to 50 claims had been filed over the use of other NECC drugs.
A second declaration filed Thursday by lead plaintiff counsel Thomas Sobol contains the same assertions.
wfrochejr999@gmail.com
Court documents filed Thursday state that the claims of a Nevada woman, whose son died after treatment with a suspect drug, will not be barred from filing a claim against the bankrupt Massachusetts drug compounding firm that produced the drug.
The filings came in response to a previous claim, since withdrawn, that procedures established in the bankruptcy settlement would bar the claim of Katrina Eldreth, whose son died after treatment with a suspect drug at a Las Vegas hospital.
The drug was produced by the New England Compounding Center, the firm blamed for a 2012 nationwide outbreak of fungal meningitis that killed 76 patients across the country.
Though most of the known victims were treated with a spinal steroid, methylprednisolone acetate (MPA), Eldreth's son was treated with a drug used to stop the heart from beating during heart surgery.
In a filing last week, Eldreth's lawyer said that the rules would bar her claim because the lot of drugs the 3-year-old was treated with was not MPA and had not been tested by federal officials.
However, Frederic Ellis, a Massachusetts attorney who represents several victims filed a declaration Thursday stating that the rules would not bar the Eldreth claims.
"The compensation program provides claimants who were exposed to other products the same opportunity to recover as claimants who received an injection of methylprednisolone acetate from one of the three contaminated MPA lots," Ellis wrote.
He added that claimants could provide circumstantial evidence to back their claim for any drug product produced by NECC.
"Circumstantial evidence is admissible to prove both exposure and causation," the brief states.
Ellis noted that additional proof would be needed to assure that any infection was not due to another cause.
Ellis stated that, in fact, some 25 to 50 claims had been filed over the use of other NECC drugs.
A second declaration filed Thursday by lead plaintiff counsel Thomas Sobol contains the same assertions.
wfrochejr999@gmail.com
Wednesday, May 13, 2015
NECC Trustee Urges Approval of Bankruptcy Plan
By Walter F. Roche Jr.
Citing the overwhelming support of victims and other creditors, the trustee for the drug compounding firm blamed for a deadly 2012 fungal meningitis outbreak is urging a judge to finally approve a $200 million liquidation plan.
In an 18-page brief filed in U.S. Bankruptcy Court, trustee Paul D. Moore is urging U.S. Bankruptcy Judge Henry Boroff to reject the lone objection to the plan to liquidate the assets of the New England Compounding Center.
The sole objection was filed by the U.S. Trustee who had questioned the fact that not all parties who would get releases from further liability were actually contributing to the $200 million fund. U.S. Trustee Edward K. Harrington also had questioned why the plan did not include an opt out provision for those objecting to the proposal.
Moore, however, noted that the overwhelming majority of those eligible to vote on the plan had voted in favor.
Of the 3,558 eligible to vote, 2,673 submitted ballots by the May 5 deadline. Of those, some 98 percent voted in favor including 99.04 percent of the victims of the outbreak.
The 2012 fungal meningitis outbreak sickened 778 patients across the country, 76 of whom died. Most of the $200 to $220 million is expected to go to those victims or their survivors.
"This is an unqualified, and indeed remarkable demonstration of creditors' support," Moore's brief stated.
The plan will be the subject of a May 19 hearing before Boroff.
A second objection to the plan had been filed in behalf of the mother of a 3-year-old Nevada boy who died following heart surgery during which he was treated with a drug produced by NECC. That objection charged that technical details set out in the plan would preclude the claim.
That objection was subsequently withdrawn.
Moore's brief cited prior cases that won approval and contained elements similar to those objected to by Harrington.
As for the releases to parties not contributing to the $200 million pot, Moore said that those releases were "essential components" in winning the support of all those who are contributing.
wfrochejr999@gmail.com
Citing the overwhelming support of victims and other creditors, the trustee for the drug compounding firm blamed for a deadly 2012 fungal meningitis outbreak is urging a judge to finally approve a $200 million liquidation plan.
In an 18-page brief filed in U.S. Bankruptcy Court, trustee Paul D. Moore is urging U.S. Bankruptcy Judge Henry Boroff to reject the lone objection to the plan to liquidate the assets of the New England Compounding Center.
The sole objection was filed by the U.S. Trustee who had questioned the fact that not all parties who would get releases from further liability were actually contributing to the $200 million fund. U.S. Trustee Edward K. Harrington also had questioned why the plan did not include an opt out provision for those objecting to the proposal.
Moore, however, noted that the overwhelming majority of those eligible to vote on the plan had voted in favor.
Of the 3,558 eligible to vote, 2,673 submitted ballots by the May 5 deadline. Of those, some 98 percent voted in favor including 99.04 percent of the victims of the outbreak.
The 2012 fungal meningitis outbreak sickened 778 patients across the country, 76 of whom died. Most of the $200 to $220 million is expected to go to those victims or their survivors.
"This is an unqualified, and indeed remarkable demonstration of creditors' support," Moore's brief stated.
The plan will be the subject of a May 19 hearing before Boroff.
A second objection to the plan had been filed in behalf of the mother of a 3-year-old Nevada boy who died following heart surgery during which he was treated with a drug produced by NECC. That objection charged that technical details set out in the plan would preclude the claim.
That objection was subsequently withdrawn.
Moore's brief cited prior cases that won approval and contained elements similar to those objected to by Harrington.
As for the releases to parties not contributing to the $200 million pot, Moore said that those releases were "essential components" in winning the support of all those who are contributing.
wfrochejr999@gmail.com
Friday, May 8, 2015
NECC Liquidation Plan Gets Overwhelming Approval
By Walter F. Roche Jr.
The liquidation plan for the New England Compounding Center has won overwhelming approval from the victims of a 2012 fungal meningitis outbreak. Two other categories of claimants also approved the plan, albeit by smaller margins.
According to a report filed Friday with the U.S. Bankruptcy Court in Massachusetts, 2,591 or 99.04 percent of the outbreak victims or their survivors voted in favor of the plan filed by NECC bankruptcy trustee Paul D. Moore.
Victims voting to reject the plan totaled 25 or less than one percent.
Those with general unsecured claims against NECC voted 23-1 in favor of the plan while those with subordinated claims voted 26-7 for the plan.
The votes had to be submitted by 4 p.m. Tuesday in order to be counted.
The vote tabulation marks the completion of one more needed step before victims and creditors of NECC can get compensation for the 2012 fungal meningitis outbreak which took the lives of 76 people.
The bankruptcy plan will next be the subject of a May 19 hearing before U.S. Bankruptcy Judge Henry J. Boroff.
Fungus tainted vials of methylprednisolone acetate were shipped by NECC to physicians and healthcare facilities across the country in 2012. A total of 778 patients were sickened with many suffering fungal meningitis.
Particularly hard hit were states like Tennessee, New Jersey Virginia, Indiana and Michigan.
Under the plan some $220 million will go to victims and creditors. That includes nearly $50 million from NECC's owners. Additional funds came from related firms and insurance companies.
Some of those owners along with former NECC employees are under indictment for charges ranging from mail and wire fraud to second degree murder. All have entered not guilty pleas and are awaiting trial.
The liquidation plan for the New England Compounding Center has won overwhelming approval from the victims of a 2012 fungal meningitis outbreak. Two other categories of claimants also approved the plan, albeit by smaller margins.
According to a report filed Friday with the U.S. Bankruptcy Court in Massachusetts, 2,591 or 99.04 percent of the outbreak victims or their survivors voted in favor of the plan filed by NECC bankruptcy trustee Paul D. Moore.
Victims voting to reject the plan totaled 25 or less than one percent.
Those with general unsecured claims against NECC voted 23-1 in favor of the plan while those with subordinated claims voted 26-7 for the plan.
The votes had to be submitted by 4 p.m. Tuesday in order to be counted.
The vote tabulation marks the completion of one more needed step before victims and creditors of NECC can get compensation for the 2012 fungal meningitis outbreak which took the lives of 76 people.
The bankruptcy plan will next be the subject of a May 19 hearing before U.S. Bankruptcy Judge Henry J. Boroff.
Fungus tainted vials of methylprednisolone acetate were shipped by NECC to physicians and healthcare facilities across the country in 2012. A total of 778 patients were sickened with many suffering fungal meningitis.
Particularly hard hit were states like Tennessee, New Jersey Virginia, Indiana and Michigan.
Under the plan some $220 million will go to victims and creditors. That includes nearly $50 million from NECC's owners. Additional funds came from related firms and insurance companies.
Some of those owners along with former NECC employees are under indictment for charges ranging from mail and wire fraud to second degree murder. All have entered not guilty pleas and are awaiting trial.
Thursday, May 7, 2015
Objection to NECC Bankruptcy Plan Withdrawn
By Walter F. Roche Jr.
The objection to the liquidation plan for the company blamed for a fatal 2012 fungal meningitis outbreak has been withdrawn just days after it was filed in behalf of a Nevada woman.
The withdrawal of the motion was recorded in U.S. Bankruptcy Court in Massachusetts Wednesday.
The motion had been filed in behalf of Katrina Eldreth, a Nevada woman whose son died after being treated with a heart drug from the New England Compounding Center.
The withdrawal was filed without explanation and Anne Andrews, Eldreth's attorney was not immediately available for comment.
The original motion stated that the requirements for filing a claim against NECC made it impossible for Eldreth to file a claim, even though an expert concluded it was more likely than not that the NECC drug, cardioplegia, was the cause of Ari Gomez death in September of 2012.
According to the motion, the drug lot the 3-year-old was treated with was never tested for contaminants by federal officials, a requirement for filing a claim.
The objection to the liquidation plan for the company blamed for a fatal 2012 fungal meningitis outbreak has been withdrawn just days after it was filed in behalf of a Nevada woman.
The withdrawal of the motion was recorded in U.S. Bankruptcy Court in Massachusetts Wednesday.
The motion had been filed in behalf of Katrina Eldreth, a Nevada woman whose son died after being treated with a heart drug from the New England Compounding Center.
The withdrawal was filed without explanation and Anne Andrews, Eldreth's attorney was not immediately available for comment.
The original motion stated that the requirements for filing a claim against NECC made it impossible for Eldreth to file a claim, even though an expert concluded it was more likely than not that the NECC drug, cardioplegia, was the cause of Ari Gomez death in September of 2012.
According to the motion, the drug lot the 3-year-old was treated with was never tested for contaminants by federal officials, a requirement for filing a claim.
Tuesday, May 5, 2015
U.S. Trustee Challenges NECC Bankruptcy Plan
By Walter F. Roche Jr.
The U.S. Trustee in Boston has filed objections to the bankruptcy plan for the company blamed for a nationwide fatal outbreak of fungal meningitis.
Trustee William K. Harrington filed the objection in U.S. Bankruptcy Court Monday charging that the plan would grant releases to parties that may not even have contributed to a $220 million settlement fund.
Calling the releases "extremely board and wide ranging," Harrington said those getting released from further claims include some of those currently under indictment in a parallel criminal case.
NECC has been blamed for the deaths of 76 people who were administered fungus tainted drugs shipped by NECC to physicians and health care facilities in 2012. The indictments charge 14 owners and employees of NECC with crimes ranging from mail and wire fraud to second degree murder.
Under the plan an estimated $220 million would be available to victims and some creditors of NECC.
Tuesday was the deadline for victims or their survivors to send in their ballots on the plan.
Court filings show some 99.5 percent of those who had responded by last week voted in favor of the plan.
Contact: wfrochejr999@gmail.com
The U.S. Trustee in Boston has filed objections to the bankruptcy plan for the company blamed for a nationwide fatal outbreak of fungal meningitis.
Trustee William K. Harrington filed the objection in U.S. Bankruptcy Court Monday charging that the plan would grant releases to parties that may not even have contributed to a $220 million settlement fund.
Calling the releases "extremely board and wide ranging," Harrington said those getting released from further claims include some of those currently under indictment in a parallel criminal case.
NECC has been blamed for the deaths of 76 people who were administered fungus tainted drugs shipped by NECC to physicians and health care facilities in 2012. The indictments charge 14 owners and employees of NECC with crimes ranging from mail and wire fraud to second degree murder.
Under the plan an estimated $220 million would be available to victims and some creditors of NECC.
Tuesday was the deadline for victims or their survivors to send in their ballots on the plan.
Court filings show some 99.5 percent of those who had responded by last week voted in favor of the plan.
Contact: wfrochejr999@gmail.com
Mother of Dead Child Says Technicality Bars Her Claim in Menigitis Outbreak Bankruptcy
By Walter F. Roche Jr.
The mother of a 3-year-old who died after being treated with drugs from a defunct compounding firm is charging that a proposed bankruptcy plan bars her from pursuing a claim against that now bankrupt firm.
In a petition filed this week in U.S. Bankruptcy Court in Massachusetts, Katrina Eldreth states that the bankruptcy plan for the New England Compounding Center will bar her claim that a contaminated drug from NECC killed 3-year-old Ari Gomez.
Along with her claim is an affidavit from a U.S. Defense Department contagious disease expert who concluded that it was likely that contaminated cardioplegia from NECC led to the boy's death following open heart surgery.
Gomez died on Sept. 24, 2012 after undergoing heart surgery at the Sunrise Medical Center in Las Vegas, Nev. His death came just one month after he underwent two surgeries at the center. During the surgery, records show, cardioplegia from NECC was administered to temporarily stop his heart from beating.
According to the petition, the bankruptcy plan would bar Eldreth's claim because the lot of cardioplegia he was injected with was never tested by federal officials. In fact only one lot of cardioplegia was tested and it was found to be contaminated, the petition states.
In addition Gomez had died and was buried before the outbreak became public. Thus there was no autopsy.
The petition states that there was no way for Eldreth to provide the proof required under the bankruptcy plan.
The petition notes that the recent indictment of NECC owners and employees includes charges that an unlicensed pharmacy technician, Scott Connolly, was overseeing the compounding of cardioplegia. Connolly was one of 14 indicted. He has entered a not guilty plea as have the other 13.
NECC has been blamed for a nationwide outbreak of fungal meningitis that sickened 778 patients, killing 76 of them. Those patients were stricken with fungal meningitis from tainted menthylprednisolone acetate that had been injected into their spines or joints.
The declaration filed with the Eldreth petition was signed by DOD infectious disease expert David L. Blazes who concluded that it was more likely than not that tainted cardioplegia caused Gomez death.
Contact: wfrochejr999@gmail.com
The mother of a 3-year-old who died after being treated with drugs from a defunct compounding firm is charging that a proposed bankruptcy plan bars her from pursuing a claim against that now bankrupt firm.
In a petition filed this week in U.S. Bankruptcy Court in Massachusetts, Katrina Eldreth states that the bankruptcy plan for the New England Compounding Center will bar her claim that a contaminated drug from NECC killed 3-year-old Ari Gomez.
Along with her claim is an affidavit from a U.S. Defense Department contagious disease expert who concluded that it was likely that contaminated cardioplegia from NECC led to the boy's death following open heart surgery.
Gomez died on Sept. 24, 2012 after undergoing heart surgery at the Sunrise Medical Center in Las Vegas, Nev. His death came just one month after he underwent two surgeries at the center. During the surgery, records show, cardioplegia from NECC was administered to temporarily stop his heart from beating.
According to the petition, the bankruptcy plan would bar Eldreth's claim because the lot of cardioplegia he was injected with was never tested by federal officials. In fact only one lot of cardioplegia was tested and it was found to be contaminated, the petition states.
In addition Gomez had died and was buried before the outbreak became public. Thus there was no autopsy.
The petition states that there was no way for Eldreth to provide the proof required under the bankruptcy plan.
The petition notes that the recent indictment of NECC owners and employees includes charges that an unlicensed pharmacy technician, Scott Connolly, was overseeing the compounding of cardioplegia. Connolly was one of 14 indicted. He has entered a not guilty plea as have the other 13.
NECC has been blamed for a nationwide outbreak of fungal meningitis that sickened 778 patients, killing 76 of them. Those patients were stricken with fungal meningitis from tainted menthylprednisolone acetate that had been injected into their spines or joints.
The declaration filed with the Eldreth petition was signed by DOD infectious disease expert David L. Blazes who concluded that it was more likely than not that tainted cardioplegia caused Gomez death.
Contact: wfrochejr999@gmail.com
Sunday, May 3, 2015
Tuesday Deadline for NECC Ballots Imminent
The deadline for casting ballots on the proposed liquidation plan for the company blamed for the 2012 fungal meningitis outbreak is Tuesday at 4 p.m.
According to court filings all known victims of the outbreak or their survivors were sent mailing instructions along with their ballots several weeks ago.
Under the plan some $220 million would be made available for victims and creditors.
During a court hearing last week, lawyers for victims noted that ballots must be delivered to the firm overseeing the bankruptcy by 4 p.m. Tuesday. Ballots postmarked on May 5 but not delivered by 4 p.m. won't be counted.
The liquidation plan is scheduled to be the subject of a May 19 hearing before U.S. Bankruptcy Court Judge Henry J. Boroff.
In a filing late last week bankruptcy trustee Paul D. Moore disclosed that the ballots submitted so far have been overwhelmingly in support of the plan with more than 99 percent favoring it.
According to court filings all known victims of the outbreak or their survivors were sent mailing instructions along with their ballots several weeks ago.
Under the plan some $220 million would be made available for victims and creditors.
During a court hearing last week, lawyers for victims noted that ballots must be delivered to the firm overseeing the bankruptcy by 4 p.m. Tuesday. Ballots postmarked on May 5 but not delivered by 4 p.m. won't be counted.
The liquidation plan is scheduled to be the subject of a May 19 hearing before U.S. Bankruptcy Court Judge Henry J. Boroff.
In a filing late last week bankruptcy trustee Paul D. Moore disclosed that the ballots submitted so far have been overwhelmingly in support of the plan with more than 99 percent favoring it.
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