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Settlement Reached In Deadly Meningitis Outbreak

Photo by Jared Wickerham / Getty Images

A settlement has been reached that could result in a more than $100 million fund for victims of a nationwide meningitis outbreak linked to a Massachusetts compounding pharmacy.

The agreement between the owners and insurers of New England Compounding Center and court-appointed bankruptcy trustee Paul Moore was filed Tuesday with a U.S. bankruptcy court.

The settlement, which must be approved by a judge, calls for NECC’s owners to pay $50 million into the fund, with insurers contributing another $25 million. Lawyers said tax refunds and the sale of an affiliated company would bring the total to above $100 million.

Federal officials said the outbreak, blamed on a tainted steroid, sickened about 750 people in 20 states, with 64 deaths.

Thomas Sobol, an attorney representing victims, called the settlement an important step toward fair compensation.

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