According to a report in the New York Times, the owners of New England Compounding Center and its insurers are close to a deal that would create a $100 million settlement fund for victims of the meningitis outbreak said to have been caused by the Boston-area compounding pharmacy. 750 people in 20 states were injured by tainted steroid injections contaminated with the meningitis strain, with 64 deaths.
The settlement must be approved by a judge, and documents have been filed with the federal bankruptcy court overseeing the litigation. Terms of the agreement call for NECC’s owners to contribute $50 million, with another $50 million from the insurance companies. The remainder will come from tax refunds and the sale of an affiliated company.
Michigan is home to the largest number of victims, many of whom are represented by Sommers Schwartz in their lawsuits.