Judge Re-affirms Restitution Delay

By Walter F. Roche Jr.

A federal judge has rejected a request that he consider immediately a proposal to award some $73.7 million to victims of the 2012 fungal meningitis outbreak.
In a brief order issued today, U.S.  District Judge Richard G. Stearns denied the reconsideration motion filed by the U.S. Attorney.
Stearns declined to reverse an earlier decision delaying action on the restitution order until the First Circuit Court of Appeals acts on an appeal of the conviction of Barry J. Cadden, the one time president of the drug compounding firm blamed for a deadly fungal meningitis outbreak.
While conceding that arguments could be made for both sides, Stearns wrote, "I am persuaded as a prudential matter, the wiser course is to stay restitution pending the resolution of the First Circuit appeal."
Assistant U.S. Attorneys George Varghese and Amanda Strachan had asked Stearns to reconsider his initial ruling on the issue.
Cadden's lawyers argued that precedent required that the matter be delayed.
Stearns noted that if the appeals court disagrees with his decision, the panel can remand the issue to his court.
"It is decidedly the First Circuit, as the higher court, that is now the boss," Stearns wrote.
Cadden already has begun serving a nine year prison sentence following his March conviction on racketeering and mail fraud charges.
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