Massachusetts deal would create meningitis victims' fund

Attorneys for creditors of a Massachusetts pharmacy linked to a nationwide meningitis outbreak say they

Stethoscope and dollar

BOSTON (AP) -- Attorneys for creditors of a Massachusetts pharmacy linked to a nationwide meningitis outbreak say they've reached a preliminary settlement that would set up a victim compensation fund worth more than $100 million.

Attorney William Baldiga says the agreement was reached among creditors, the bankruptcy trustee and the owners and insurers of the New England Compounding Center. The deal needs approval from a bankruptcy judge.

Since the contaminated steroids were discovered, 751 people in 20 states have developed fungal meningitis or other infections; 64 have died. Michigan, Tennessee and Indiana were hit the hardest.

A federal investigation of the Framingham-based company is ongoing. The company's owners say they deny liability or wrongdoing but want to play a major role in establishing the fund.


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