Clinic Wants Meningitis Cases Returned to Tennessee

By Walter F. Roche Jr.

A Tennessee clinic wants the 24 cases filed against it by victims of the 2012 fungal meningitis outbreak moved back to a federal court in Tennessee.
In a 22-page brief filed on the eve of a key hearing, lawyers for the Specialty Surgery Center (SSC) of Crossville, Tenn. are asking for the cases to be transferred from federal court in Boston, Mass. to U.S. District Court in Nashville, Tenn.
U.S. District Judge Rya Zobel, who has been presiding over dozens of cases stemming from the outbreak in her Boston courtroom, has set a hearing for tomorrow (Wednesday) to hear arguments over which cases will remain in her court and which may go back to their home districts.
In the brief filed by the clinic's  attorney, Chris J. Tardio, the clinic argues that it makes no sense to hold trials in the 24 Crossville cases more than 1,000 miles from  home.
Sending the cases back to Tennessee, the brief states, is "unquestionably the most efficient and fair way forward in the SSC cases."
Noting that the evidence common to all the meningitis cases already has been completed in Massachusetts, the filing states that "Tennessee is the appropriate venue for trial."
Zobel also must decide whether meningitis cases from Maryland and New Jersey should remain in her court or be sent back to courts in those two states.
Several dozen cases against the Saint Thomas Outpatient Neurosurgical Center in Nashville, Tenn. are likely to remain before Zobel although there have been recent hints a settlement may be in the works for those cases.
Still other cases in which a small number of claims have been filed against clinics across the country are likely to be sent back to their home states.
As  for keeping the SSC cases in Boston, Tardio's brief states, "This defies common sense and runs counter to relevant venue law."
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Judge Defers Action on Cadden Home Detention

By Walter F. Roche Jr.

A federal judge has approved a request for two defendants in the fungal meningitis case to leave the state of Massachusetts to bring their son to a Connecticut squash camp.
Judge Richard G. Stearns approved the travel motion filed by Douglas and Carla Conigliaro of Dedham, Mass., but action has been deferred on the motion of another defendant to be released from home confinement.
Barry Cadden, who is facing 25 second degree murder counts, has been under home confinement in Wrentham, Mass., but filed a motion last week so that he could meet on short notice with his lawyers and to tend to family matters.
The travel motion, which was approved, allows the Conigliaros to leave Massachusetts to bring their son to a summer squash camp at Yale University.
The Caddens and Conigliaros, who are related by marriage, were part owners of the New England Compounding Center, the company blamed for a 2012 fatal fungal meningitis outbreak. Cadden was one of 14 owners and employees of NECC indicted in December 2014 following a lengthy grand jury probe.
At today's hearing before Chief Magistrate Judge Jennifer Boal, Cadden's lawyer argued in favor of a motion to lift the home detention mandate and replace it with a daily curfew requirement. Federal prosecutors argued against it, citing the serious charges Cadden faces.
Cadden had cited "onerous bail conditions" and contended he was never a threat to the community.
Cadden's lawyers had asked that he be allowed to visit with his lawyers and tend to his family duties outside his home, citing the fact that he is scheduled to go on trial on Jan. 5, 2017.
Several victims of the deadly outbreak had sent emails to the court opposing Cadden's motion, some of which were read into the record.
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Some Saint Thomas Execs Get Hefty Raises

By Walter F. Roche Jr.

The former head of Saint Thomas Health got a 40 percent pay boost in the last fiscal year pushing his total income and benefit package to a little over $2.7 million, tax records show.
The tax return or 990 for Saint Thomas Health and related corporations show Michael Schatzlein's salary and benefits jumped by more than $700,000 in the fiscal year ending June 30, 2015. Saint Thomas officials released a copy of the return last week.
In addition to Schatzlein, who has since taken on the role of senior vice president for Ascension Health, Saint Thomas' parent, Karen Springer an executive vice president for Saint Thomas saw her pay and benefits boosted by more than $235,000 to a total of $824,355, also a 40 percent hike.
Other top earners, according to the return, include physicians Stephen Fahrig at $1,160,371, Vafa Mansour at $1,216,961 and Joseph Boyd at $1,226,903. James Baker 2nd's salary and benefits dipped to $1,039,214 from the prior year's total of $1,299,159, the return shows.
Saint Thomas Health, the parent for the five hospital Saint Thomas system reported revenue of $278.7 million with expenses of $283,974,446 for a more than $5 million deficit. That compares to a $15.4 million deficit at the end of the prior year.
Two Saint Thomas hospitals, however, showed substantial year end surpluses. Saint Thomas Midtown had revenue top expenses by nearly $48.2 million while Saint Thomas West reported revenue topping expenses by $56.2 million.
Both of those hospitals also reported year end balances in the prior fiscal year with Saint Thomas Midtown reporting a $39.6 million year end balance and Saint Thomas West reporting a $67.8 million year end total.
The Saint Thomas Outpatient Neurosurgical Center, which is the defendant in several pending suits stemming from the deadly 2012 fungal meningitis outbreak, is half owned by the Saint Thomas Health Network, another affiliated firm.
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Meningitis Defendant Wants Out from Home Detention

By Walter F. Roche Jr.

Citing "onerous bail conditions" and contending he "never posed any danger to the community," a man charged with 25 counts of second degree murder has asked a federal judge to free him from home detention.
In a five-page motion filed this week in U.S. District Court in Boston, Mass., lawyers for Barry Cadden say he needs to be free to leave his Wrentham, Mass. home to meet with his lawyers and tend to the needs of his children.
Cadden is one of 14 persons charged in the wake of a 2012 fungal meningitis outbreak that sickened 778 patients, killing 76 of them. He is scheduled to go to trial on Jan. 5, 2017.
The motion, which is opposed by federal prosecutors is scheduled for a Monday hearing.
In opposing Cadden's motion, federal prosecutors, charged that, "The following months present a serious risk of Cadden's flight."
The six-page prosecution filing notes that Cadden, if convicted on all charges, faces possible life imprisonment. They also noted that Cadden's motion to dismiss the most serious charges was recently denied by the federal judge presiding over his case.
Cadden's motion, however, states that he has never been a flight risk and that if his motion were granted he would still be under constant electronic monitoring. In addition his lawyers noted Cadden already has surrendered his passport and has complied with his current restrictions.
His bail, the motion notes, would remain at $500,000.
The motion states that with the trial approaching Cadden will need to be available to meet with his lawyers on short notice.
Finally Cadden's lawyers stated that when their client was informed that he was about to be arrested in late 2014, he was waiting at the front door of his home when federal agents arrived.
Prosecutors, meanwhile, cited Cadden's recent "unfounded and inflammatory allegations" that federal prosecutors had engaged in misconduct by tipping off the media of his impending arrest.
That charge, like the motion to dismiss the second degree murder charges, was rejected by U.S. District Court Judge Richard Stearns.
Two other defendants in the case, Douglas and Carla Conigliaro, have asked Stearns for permission to travel with their son to Yale University where their son will be participating in a summer squash camp.
Cadden and the Conigliaro family were owners of the New England Compounding Center, the company blamed for the 2012 deadly outbreak of fungal meningitis.
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Judge's Move Could Send Meningitis Case Back Home

By Walter F. Roche Jr.

The federal judge presiding over dozens of cases stemming from a deadly fungal meningitis outbreak has issued an order that is likely to send most of the cases back to the courts where they were first filed.
U.S. District Judge Rya Zobel's Monday order requires attorneys for the victims of the outbreak to indicate prior to a June 22 hearing whether they wish to keep their cases in federal court in Boston or have them sent back to the courts where they were first filed.
According to the order some 379 cases were transferred to Zobel over the past three years, while still others were filed in Boston to begin with, pushing the total to more than 450.
The order comes as some of the victims say they were recently told by their attorneys that payments from a $200 million settlement fund could begin flowing next month if final details of an agreement can be worked out with the Medicare program.
Medicare officials are seeking millions of dollars in reimbursements for money Medicare paid for victims' care. The victims reported a "global agreement" could come this week.
Zobel's order meanwhile follows the recommendations of lawyers from both plaintiffs and defendants on the most efficient way to handle the multiple cases. The lawyers concluded it would be more efficient to send cases involving a small number of plaintiffs and defendants back to their origin.
More than two dozen of the cases involve single plaintiffs and defendants.
Also following the recommendations, Zobel's order would keep nearly all of the Tennessee cases in her court. Those cases were filed against the Saint Thomas Outpatient Neurosurgical Center and the Howell Allen Clinic, both in Nashville, Tenn. or the Specialty Surgery Center in Crossville, Tenn.
One of those Nashville cases had been scheduled to go to trial in August, but it was postponed recently after there were hints a settlement might be in the works. Zobel's order, however, makes no direct mention of a possible settlement.
Zobel's order states that she will hear oral arguments on whether to send some or all non-Tennessee cases back to their court of origin at the previously scheduled June 22 status conference.
The 2012 outbreak, caused by fungus infested spinal steroids, sickened 778 patients across the country, killing 76 of them.
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Judge Delays Key Meningitis Criminal Trial to 2017

By Walter F. Roche Jr.

Citing the recent production of some 2.2 million documents, a federal judge has granted a delay till Jan. 5, 2017 for the trial of two men charged with 25 counts of second degree murder in the aftermath of a nationwide fungal meningitis outbreak.
In a two-page order issued today U.S. District Judge Richard G. Stearns concluded that the sheer volume of documents provided by prosecutors to defense lawyers on May 10, warranted a delay in the trial of Barry Cadden and Glen Chin. A September trial date had been set earlier.
Stearns' delay order only applies to Cadden and Chin and not the remaining defendants who still, at least for now, face a September trial date.
The two face second degree murder charges along with racketeering and mail and wire fraud charges.
The two were indicted along with a dozen other employees and owners of the New England Compounding Center following a federal probe of a deadly fungal meningitis outbreak caused by fungus tainted spinal steroids.
In the same order, Stearns rejected a motion by defense lawyers that would have barred federal prosecutors from using thousands of documents gathered in the NECC probe.
"There is no basis for the contention the government has engaged in games," Stearns wrote, adding that the request to bar the use of the documents in question was "nonsensical."
The delay comes just days after Stearns rejected a motion by Cadden and Chin's lawyers to dismiss the second degree murder and related racketeering charges the two face.
Chin and Cadden, along with the other 12 defendants have all entered not guilty pleas to the charges contained in the 131 count indictment.
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Judge Denies Dismissal on Meningitis Murder Counts

By Walter F. Roche Jr

A federal judge has flatly rejected a motion to dismiss second degree murder and related racketeering charges against two former officials of the New England Compounding Center, the drug firm blamed for a deadly 2012 fungal meningitis outbreak.
In a ten-page ruling issued this week U.S. District Judge Richard G. Stearns, sitting in Boston, Mass.,concluded that federal prosecutors had provided sufficient facts and allegations for the 25 second degree murder charges to go before a jury.
"As a general matter I agree with the government that the law is reasonably well settled that the existence of a pattern of racketeering activity is a question of fact reserved for a jury trial," Stearns wrote.
Barry Cadden, part owner of NECC, and Glen Chin, NECC's chief pharmacist, were each charged with 25 counts of second degree murder.
Stearns also rejected the argument of defense lawyers that it would have made no sense for the NECC owners to engage in activities that would ultimately result in their demise.
"Criminal conduct does not always reflect the most rational of choices or even the most basic calculation of ultimate self interest," Stearns added.
"If the government allegations prove true, NECC will not be the first enterprise undone by greed or a sense of invulnerability," he continued, adding "No argument has been made that Cadden and Chin set out to strangle the golden goose."
He wrote that he expected federal prosecutors would argue that "the defendants apparent success in cutting corners and enhancing profits without getting caught led them into a self deceptive state of impregnability that fed an increasingly reckless and heedless course of conduct."
The judge noted that the indictment  correctly "recites" the language of second degree murder statutes in the seven states where the charged deaths occurred. "Michigan," he wrote,"serves as the template for the others."
In a separate order Stearns rejected a request to start an inquiry to have sanctions imposed on federal prosecutors on charges they leaked grand jury information to the news media and issued inflammatory press releases.
The defendants had charged that the news media had been leaked advance notice of the indictments resulting in camera crews confronting Cadden at his South Shore home at the time of his indictment and arrest.
Though the case is now scheduled for a Fall trial, motions are pending for Cadden and Chin for a delay.
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