Judge approves $200 million to compensate Victims of 2012 Meningitis Outbreak

On Tuesday, a federal bankruptcy judge in Boston, city in Massachusetts, announced that he has planned to approve a plan to pay about $200 million to compensate victim of a deadly meningitis outbreak that was caused by a now-closed Massachusetts pharmacy, Framingham pharmacy. The lawyers involved in the litigation said the judge’s decision will be approved soon.

A lawyer for the victims of the outbreak and a lawyer acting as bankruptcy trustee of the New England Compounding Center released a joint statement where they said under the judge’s plan, about $200 million will be given to the NECC’s creditors to compensate. The money will also be given to people who fell ill or died due the injection of tainted steroid, the lawyers said. According to reports, more than 98% of creditors voted on the plan. Those creditors voted to accept the plan.

The lawyers said the victims of the outbreak will start getting compensation by the end of 2015. In a statement, David Molton, a lawyer advising the creditors bringing claims against the compounding center, said, “The success of the plan, and its centerpiece $200 million fund for victims and creditors, marks the culmination of two plus years of hard work and unprecedented cooperation between numerous diverse constituencies”.
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The lawyer, who has been acting as the trustee for the center, said the decision of the judge is acceptable. Paul Moore, attorney and trustee for the center, said that it is good that people who suffered a lot during the outbreak will start getting compensation without any delay.

As per the reports, more than 3,000 parties have filed the claims and most of them are victims and their family members. More than 60 people died in that outbreak.