Law firm reaches settlement over meningitis outbreak

  • Wednesday, May 7, 2014

McGrath Law Firm of Mount Pleasant announces a $100 million settlement in the nationwide meningitis outbreak that began in 2012 and regarded as the worst outbreak of its kind in U.S. history. The Federal Bankruptcy Court has approved a settlement with New England Compounding Center (NECC) and the insurance companies. The individuals who owned and operated NECC, which is the pharmaceutical company that distributed steroid medication tainted with the deadly meningitis bacteria, will contribute nearly $50 million in cash to the settlement.

McGrath Law Firm represents 20 of the victims nationwide, one of whom lives in the Charleston area.

According to Peter McGrath, former federal prosecutor and founder of McGrath Law Firm, a fund is being established to compensate all of the victims. McGrath explained that even though the settlement sounds like a lot of money, the funds need to be distributed among the 4,000 plaintiffs, some of whom have died. The settlement will be distributed over the next six months, in tiers, according to the extent of the injury and medical treatment.

McGrath said, “This is beginning of the end and will bring the victims some relief. I have clients who have literally been sitting at home because they are too sick to work, but cannot afford to pay for the treatment they need to get better. They will finally be able to move forward with their lives.”

McGrath Law Firm was the first law firm in the nation to request a lien on the defendants’ homes and assets, which, according to McGrath, pushed the defendants to ultimately settle.

McGrath Law Firm has unique infectious disease experience. Attorney McGrath, a former federal prosecutor and founder of McGrath Law Firm, was lead counsel in the nationwide hepatitis outbreak in New England in 2010. The firm also represents 30 clients in the recent hepatitis B outbreak in North Charleston.


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