After the meningitis outbreak in 2012, that involved 14,000 patients and was responsible for killing 64 people, the Framingham pharmacy at the center of the tainted injections has agreed to contribute to the $100 million settlement for the victims. The pharmacy, also known as the New England Compounding Center (NECC), based in Framingham, Massachusetts, manufactured the medication that was found to be tainted and led to the deadly outbreak.
After the meningitis outbreak, the Centers for Disease Control and Prevention (CDC) discovered that the NECC made three lots of tainted steroid injections that were sent to 23 states between May and September of 2012. Reports indicate that over 750 people have been diagnosed with fungal meningitis and are receiving treatment, and 400 pharmacy lawsuits have been filed against the NECC so far.
As a result, the New England Compounding Center filed for bankruptcy, and a bankruptcy trustee has been appointed to consolidate the cases and distribute funds to victims and their families for the many deaths and injuries the tainted medicine caused. After prolonged negotiations, this money will become available to victims and their families. However, the proposed settlement has not been approved by the U.S. Bankruptcy Court as of yet. Once it is approved, the victims and their families may start receiving compensation as soon as early 2014.
The amount each victim will get will be decided by the court. The money available to fulfill this settlement will come from the insurance companies, a tax refund from the government, and the rest will come from the owners of NECC and its sister companies.