Amanda Bynes enters settlement in hit-and-run case






LOS ANGELES (AP) — Actress Amanda Bynes has resolved a misdemeanor hit-and-run case after entering into a civil settlement with other drivers.


Court records show Bynes entered a civil compromise to end the case and her attorney informed a Los Angeles court on Thursday. Bynes was charged with leaving the scene of accidents in April and August without providing the proper information.






Defendants in certain California misdemeanor cases are allowed to enter civil settlements to resolve criminal cases.


City Attorney’s spokesman Frank Mateljan (mah-tell-JIN’) says prosecutors objected to the dismissal, noting other instances in which Bynes has been cited for driving without a license and her pending driving under the influence case.


Bynes rose to fame starring in Nickelodeon’s “All That” and has also starred in several films, including 2010′s “Easy A.”


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President’s pot comments prompts call for policy






SAN FRANCISCO (AP) — Medical marijuana advocates are taking some solace from President Obama‘s statement that prosecuting individual users in Colorado and Washington is not a priority, but they want assurances that federal crackdowns on big pot dispensaries will end in California and other states.


Local and state officials, meanwhile, called on the administration to clarify its enforcement policy in states with marijuana laws.






Obama said federal authorities would leave alone individual users in Colorado and Washington, states that legalized recreational marijuana use.


Still, federal officials said they will continue to try to shut down big commercial pot operations, whether they operate under state medical marijuana laws or not. The federal government is planning to soon release policies for dealing with marijuana in Colorado and Washington, where pot is now legal under state law.


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SEC has examined Bank of America mortgage repurchases






WASHINGTON/CHARLOTTE (Reuters) – Securities regulators have made inquiries into the mortgage repurchase practices at Bank of America Corp’s Countrywide unit, according to a transcript filed in a lawsuit against the bank by insurer MBIA Inc.


The details of the inquiries, which had not been previously disclosed, were included in documents filed this week.






It is unclear if the SEC continues to investigate the matter, but the documents reveal the agency’s interest dating back to at least 2010 in an issue that has already saddled the second-largest U.S. bank with billions of dollars of losses in the wake of the financial crisis.


According to the documents, the U.S. Securities and Exchange Commission requested a meeting with the bank to discuss its representations and warranties process, according to the documents.


When selling the mortgages, banks made promises or “representations and warranties” about the loans. Investors can ask banks to buy back soured mortgages if these promises were evidently broken, for reasons such as poor underwriting, insufficient verification of income or other documentation errors.


The SEC also asked about reserves for mortgage repurchase requests, a bank employee testified.


Since buying Countrywide in 2008, Bank of America has been forced to take billions of dollars of losses on soured mortgages that were sold to investors such as Fannie Mae and Freddie Mac during the housing boom. At the end of the third quarter, it had set aside reserves of $ 16.3 billion in reserves for future claims.


While the SEC has taken action against Bank of America over its merger with Merrill Lynch, it has not sued the bank over conduct at Countrywide. In 2010, the SEC imposed a record $ 22.5 million penalty on Countrywide chief executive Angelo Mozilo over disclosures made as the subprime mortgage crisis emerged.


The SEC’s interest in repurchases was disclosed as part of heated litigation between MBIA and Bank of America over mortgage-related claims. Bank of America on Thursday filed a lawsuit against MBIA related to the bank’s efforts to buy the insurer’s bonds.


An SEC spokesman did not respond to a request for comment. A Bank of America spokesman declined to comment.


In its annual report filing in February, the bank said it had received “a number of subpoenas and other requests for information” from regulators about mortgage-backed securities and other mortgage-related matters.


In its most recent quarterly filing, it also included a recurring disclosure that “in the ordinary course of business” the bank is “subject to regulatory examinations, information gathering requests, inquiries, investigations, threatened legal actions and proceedings.”


The transcripts filed this week include depositions MBIA lawyers conducted with Bank of America employees in August. The interviews, with Cynthia Simantel and Michael Schloessmann, shed new light on what the SEC may be examining.


Simantel, who is an executive in Bank of America’s investor audit department, which handles repurchase claims, said she gave testimony to the SEC “a few years ago”, and discussed with the SEC a grid used to rate loans that came in to the group, according to the transcripts.


Schloessmann, who managed the representations and warranties process, which governs how repurchases are made, said Countrywide provided the SEC with claims-related data the agency had requested in early 2010.


Countrywide also put together a document about the top five reasons that they have approved repurchases related to so-called monoline insurers, which was provided to the SEC, according to emails discussed by Schloessmann.


The details suggest the SEC could be examining whether the bank was properly reserving for repurchases, or whether it properly disclosed its repurchase requests.


(Reporting By Aruna Viswanatha in Washington and Rick Rothacker in Charlotte; editing by Andrew Hay)


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UPDATE 3-Cricket-Hughes shines as Australia reach 299-4






* Hughes falls just short of century


* Clarke and Hussey combine for 101






* Welegedera takes 3-99 (Adds quotes)


HOBART, Dec 14 (Reuters) – Phil Hughes made a solid 86 on his return to test cricket before Michael Clarke and Mike Hussey took up the running and steered Australia to 299 for four at close of play on the first day of the first test against Sri Lanka on Friday.


Hughes was the only batsmen to fall in the final session, lasting only a couple of overs after lunch before being bowled through the gate by Chanaka Welegedera, giving the Sri Lankan seamer his third wicket of the day.


Clarke, who had made 70 not out, and Hussey, unbeaten on 37, batted through the remainder of the day and if the evidence of their prolific partnerships in the recent series against South Africa is anything to go by, will take some shifting.


“Overall, 299 for four puts the ball in our court,” said Hughes. “I thought we were outstanding today. It really gives us momentum going into tomorrow.”


Sri Lanka’s bowlers, dubbed this week as the worst pace attack ever to tour Australia by former test bowler Rodney Hogg, made life uncomfortable for the batsmen at times but struggled for any real penetration under cloudy skies at Bellerive Oval.


“I think we showed we can put Australia under pressure and hopefully the bowlers will be fresh in the morning and we can get them out for less than 100 additional runs,” said Welegedera, who finished with 3-99 on his return after nine months out injured.


Clarke, who passed 1,400 runs for the year, has now put on 731 runs in partnerships with Hussey in the last four tests and will be looking to plunder a few more on Saturday despite taking a couple of painful knocks to his legs.


Friday, however, belonged to Hughes.


The lefthander was recalled to the side on the back of good domestic form following the retirement of Ricky Ponting at the end of the series against the Proteas.


The 24-year-old reached his fourth test half century with a square drive for three runs and then initially accelerated towards a century, most notably with an ugly but effective slog for six off spinner Rangana Herath.


CALAMITOUS RUNOUT


On the ground where his second spell as a test batsman ended amid questions about his technique after two failures against New Zealand last year, Hughes scored eight fours and one six in his 166-ball knock before Welegedera struck with a superb ball.


“It was nice to get a few,” he said. “It would have been nice to get a few more and get into three figures.”


Australia had lost openers Ed Cowan (four) and David Warner in the opening session, the latter run out for 57 on the stroke of lunch after a calamitous misunderstanding with Hughes.


Shane Watson, dropping down to fourth in the batting order to allow Hughes to come in at number three, followed them to the pavilion for 30 shortly before tea, the victim of an exceptional diving catch in the slips by skipper Mahela Jayawardene.


That was a second wicket for Welegedera and a measure of redemption for the bowler after he had Hughes caught behind for 77 only for the umpire to call a no ball.


Welegedera had also made the early breakthrough for the tourists when Cowan tried to pull a short delivery only for the ball to catch him high on the bat and carry to mid-on where Shaminda Eranga took a simple catch.


It could have been even better for the Sri Lankans, who were only centimetres away from the perfect start to the morning after Clarke had won the toss and elected to bat.


Cowan edged the second delivery of the day from Nuwan Kulasekara to the slips but Angelo Mathews was just unable to get his hands to it, despite an athletic dive. (Editing by Peter Rutherford)


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Tolkien class at Wis. university proves popular






MILWAUKEE (AP) — The vast collection of J.R.R. Tolkien manuscripts initially sold senior Joe Kirchoff on Marquette University, so when the school offered its first course devoted exclusively to the English author, Kirchoff wanted in. The only problem: It was full and he wasn’t on the literature track.


Undaunted, the 22-year-old political science and history major lobbied the English department and others starting last spring and through the summer and “kind of just made myself a problem,” he said. His persistence paid off.






“It’s a fantastic course,” said Kirchoff, a Chicago native. “It’s a great way to look at something that’s such a creative work of genius in such a way you really come to understand the man behind it.”


He and the 31 other students can now boast of their authority about the author who influenced much of today’s high fantasy writing. The course was taught for the first time this fall as part of the university’s celebration of the 75th anniversary of “The Hobbit” being published. And class wrapped up just before the film, “The Hobbit: An Unexpected Journey,” was released Friday.


The class, which filled up fast with mostly seniors who had first dibs, looked at Tolkien as a whole, not just the popular “Lord of the Rings” and “The Hobbit.” Students took their final exam this week, and the course was so well received, Marquette is considering more in the future.


“It’s the best class I’ve had in 27 years here … for student preparation, interest and enthusiasm,” said English professor Tim Machan. “And I can throw out any topic and they will have read the material and they want to talk about the material.”


Marquette is one of the main repositories of Tolkien’s drafts, drawings and other writings — more than 11,000 pages. It has the manuscripts for “The Lord of the Rings” and “The Hobbit,” as well as his lesser-known “Farmer Giles of Ham” and his children’s book “Mr. Bliss.” Marquette was the first institution to ask Tolkien for the manuscripts in 1956 and paid him about $ 5,000. He died in 1973.


Other significant collections are at the Bodleian Library at Oxford University in England and Wheaton College in Illinois.


Though Tolkien classes aren’t unusual nationwide, Marquette students had the added bonus of being able to visit Tolkien’s revisions, notes, detailed calendars, maps and watercolors on site at the school’s archive. And they got a lesson from the school’s archivist Bill Fliss.


“One of the things we wanted to impress upon the students was the fact that Tolkien was a fanatical reviser,” said Fliss said. “He never really did anything once and was finished with it.”


Chrissy Wabiszewski, a senior English major, described Tolkien’s manuscripts as art.


“When you get down and look at just his script and his artwork in general, it all kind of flows together in this really beautiful, like, cumulative form,” Wabiszewski said. “It’s cool. It is just really cool to have it here.”


The class also looked at Tolkien’s poetry, academic articles and translations of medieval poems; talked about the importance of his writers’ group, the Inklings; and explored what it meant to be a writer at that time.


“We’ve … tried to think about continuities that ran through everything he did,” Machan said. His students were also required to go to three lectures that were part of Marquette’s commemoration.


“The Hobbit,” a tale of homebody Bilbo Baggins’ journey, is set in Tolkien’s fictional realm of Middle-earth and takes place 60 years before “The Lord of the Rings.” The movie released Friday is the first of the trilogy, with “The Hobbit: There and Back Again” set for release on Dec. 13, 2013, and a third film to come out in the summer of 2014.


Most of the students were just finishing elementary school when the first “Lord of the Rings” film was released 11 years ago.


Kirchoff said he started reading “The Hobbit” and the “Lord of the Rings” when he was in fourth grade, before the movies came out. He said the movies have introduced others to Tolkien’s ideas, making his love for Tolkien’s fantasy worlds more socially acceptable.


“The movies were fantastic enough and engaging enough to coexist in my mind with the literature I really do love,” he said.


Wabiszewski said it’s clear her classmates weren’t just taking the class as a filler.


“I definitely expected the enthusiasm from everybody but just the knowledge that everybody brought into the class, it’s cool,” she said. “We really have a smart group of people in that class who have a lot to offer.”


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Fewer health care options for illegal immigrants






ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.


The family’s options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama‘s health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can’t afford to care for as many poor families.






To be clear, Obama’s law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.


But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don’t expand Medicaid, the joint state-federal health program for the poor and disabled.


When the reform has been fully implemented, illegal immigrants will make up the nation’s second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.


And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.


In communities “where the number of undocumented immigrants is greatest, the strain has reached the breaking point,” Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. “In response, many hospitals have had to curtail services, delay implementing services, or close beds.”


The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.


Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict “a double whammy” in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $ 1.2 billion annual budget to care for illegal immigrants.


Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.


A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.


California, which is home to the nation’s largest population of illegal immigrants, spent an estimated $ 1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.


The New Jersey Hospital Association in 2010 estimated that it cost between $ 600 million and $ 650 million annually to treat 550,000 illegal immigrants.


And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $ 96 million in benefits to illegal immigrants, up from $ 81 million two years earlier. The state’s public hospital districts spent an additional $ 717 million in uncompensated care to treat that population.


If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision “basically eviscerates” the effects of the health care overhaul in those areas because of “who lives there and what they’re eligible for,” said Lisa Clemans-Cope, a senior researcher at the Urban Institute.


Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it’s believed states with the most illegal immigrants will face a smaller cut, they will still lose money.


The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.


“In a sense we’ve been in the worst-case scenario in Texas for a long time,” said Lewis Foxhall, MD Anderson’s vice president of health policy in Houston. “The large number of uninsured and the large low-income population creates a very difficult problem for us.”


Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $ 11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors’ offices. But in the first year, $ 600 million was cut from the centers’ usual allocation, leaving many to use the money to fill gaps rather than expand.


There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.


Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.


For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.


“They always attended to me,” she said, “even though it’s slow.”


___


Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .


Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .


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Fitch affirms France “AAA”, says no room for slippage






PARIS (Reuters) – Fitch Ratings stuck by its triple-A rating on France in a much-awaited review on Friday but warned that an expected peak in debt in 2014 was the limit it could agree to for a country with a top-notch credit grade.


Fitch is the only agency to retain an AAA rating on the euro zone’s second-largest economy. It kept to its negative outlook, saying that indicated a slightly greater than 50 percent chance of a downgrade in future.






Fitch said it was raising its forecast for the country’s debt in 2014 to 94 percent of gross domestic product from an earlier 92 percent – higher than any other top-rated sovereign except the United States and Britain.


“This is at the limit of the level of indebtedness consistent with France retaining its ‘AAA’ status assuming the government debt is firmly placed on a sustainable downward path from 2014,” Fitch said in a statement.


French Finance Minister Pierre Moscovici called Fitch’s rating an “encouragement” and a “motivating force” that confirmed the government was right to pursue its debt reduction targets.


“It’s a pointer for the way ahead. My take on this is that the French economy is solid and can be trusted, and it is absolutely essential that we keep to the path we have mapped out: European construction, budget solidity and competitiveness,” he told Europe 1 radio.


Last month, Moody’s cut France by one notch from AAA to Aa1 – causing only muted investor reaction – following a similar downgrade by Standard & Poor’s in January.


(Reporting by Alexandria Sage; editing by Patrick Graham)


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Aides: Chavez in tough fight, may miss swearing-in






CARACAS, Venezuela (AP) — Somber confidants of President Hugo Chavez say he is going through a difficult recovery after cancer surgery in Cuba, and one close ally is warning Venezuelans that their leader may not make it back for his swearing-in next month.


Information Minister Ernesto Villegas said Wednesday night that Chavez was in “stable condition” and was with close relatives in Havana. Reading a statement, he said the government invites people to “accompany President Chavez in this new test with their prayers.”






Villegas expressed hope about the president returning home for his Jan. 10 swearing-in for a new six-year term, but said in a written message on a government website that if Chavez doesn’t make it, “our people should be prepared to understand it.”


Villegas said it would be irresponsible to hide news about the “delicateness of the current moment and the days to come.” He asked Venezuelans to see Chavez’s condition as “when we have a sick father, in a delicate situation after four surgeries in a year and a half.”


Moving to prepare the public for the possibility of more bad news, Vice President Nicolas Maduro looked grim when he acknowledged that Chavez faced a “complex and hard” process after his latest surgery.


At the same time, officials sought to show a united front amid the growing worries about Chavez’s health and Venezuela’s future. Key leaders of Chavez’s party and military officers appeared together on television as Maduro gave updates on Chavez’s condition.


“We’re more united than ever,” said Maduro, who was flanked by National Assembly President Diosdado Cabello and Oil Minister Rafael Ramirez, both key members of Chavez’s inner circle. “We’re united in loyalty to Chavez.”


Analysts say Maduro could eventually face challenges in trying to hold together the president’s diverse “Chavismo” movement, which includes groups from radical leftists to moderates, as well as military factions.


Tapped by the 58-year-old president over the weekend as his chosen political heir, Maduro is considered to be a member of radical left wing of Chavez’s movement that is closely aligned with Cuba’s communist government.


Cabello, a former military officer who also wields power within Chavez’s movement, shared the spotlight with Maduro by speaking at a Mass for Chavez’s health at a military base.


Just returned from being with Chavez for the operation, Cabello called the president “invincible” but said “that man who is in Havana … is fighting a battle for his life.”


After Chavez’s six-hour operation Tuesday, Venezuelan television broadcast religious services where people prayed for Chavez, interspersed with campaign rallies for upcoming gubernatorial elections.


On the streets of Caracas, people on both sides of the country’s deep political divide voiced concerns about Chavez’s condition and what might happen if he died.


At campaign rallies ahead of Sunday’s gubernatorial elections, Chavez’s candidates urged Venezuelans to vote for pro-government candidates while they also called for the president to get well.


“Onward, Commander!” gubernatorial candidate Elias Jaua shouted to a crowd of supporters at a rally Wednesday. Many observers said it was likely Chavez’s candidates could get a boost from their supporters’ outpouring of sympathy for Chavez.


Opposition leader Henrique Capriles, who lost to Chavez in the October presidential election and is running against Jaua, complained Wednesday that Chavez’s allies are taking advantage of the president’s health problems to try to rally support. He took issue with Jaua’s statement to supporters that “we have to vote so that the president recovers.”


Maduro looked sad as he spoke on television, his voice hoarse and cracked at times after meeting in the pre-dawn hours with Cabello and Ramirez. The pair returned to Venezuela about 3 a.m. after accompanying Chavez to Cuba for his surgery.


“It was a complex, difficult, delicate operation,” Maduro said. “The post-operative process is also going to be a complex and hard process.”


Without giving details, Maduro reiterated Chavez’s recent remarks that the surgery presented risks and that people should be prepared for any “difficult scenarios.”


The constitution says presidents should be sworn in before the National Assembly, and if that’s not possible then before the Supreme Court.


Former Supreme Court magistrate Roman Duque Corredor said a president cannot delegate the swearing-in to anyone else and cannot take the oath of office outside Venezuela. A president could still be sworn in even if temporarily incapacitated, but would need to be conscious and in Venezuela, Duque told The Associated Press.


If a president-elect is declared incapacitated by lawmakers and is unable to be sworn in, the National Assembly president would temporarily take charge of the government and a new presidential vote must be held within 30 days, Duque said.


Chavez said Saturday that if an election had to be held, Maduro should be elected president.


The dramatic events of this week, with Chavez suddenly taking a turn for the worse, had some Venezuelans wondering whether they were being told the truth because just a few months ago the president was running for his fourth presidential term and had said he was free of cancer.


Lawyer Maria Alicia Altuve, who was out in bustling crowds in a shopping district of downtown Caracas, said it seemed odd how Maduro wept at a political rally while talking about Chavez.


“He cries on television to set up a drama, so that people go vote for poor Chavez,” Altuve said. “So we don’t know if this illness is for that, or if it’s that this man is truly sick.”


Some Chavez supporters said they found it hard to think about losing the president and worried about the future. His admirers held prayer vigils in Caracas and other cities this week, holding pictures and singing hymns.


Chavez has undergone four cancer-related surgeries since June 2011. He has also undergone months of chemotherapy and radiation treatments. Throughout his treatments, Chavez has kept secret some details of his illness, including the exact location and type of the tumors.


Ecuadorean President Rafael Correa wished his close ally the best, while also acknowledging the possibility that cancer might end his presidency. “Chavez is very important for Latin America, but if he can’t continue at the head of Venezuela, the processes of change have to continue,” Correa said at a news conference in Quito.


___


Associated Press writer Christopher Toothaker contributed to this report.


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“The Voice” finale taps Rihanna, Kelly Clarkson, Bruno Mars and the Killers






LOS ANGELES (TheWrap.com) – The season finale of “The Voice” has enlisted some high-profile talent to help send the show’s third cycle off with a bang.


Rihanna, Kelly Clarkson, Bruno Mars and The Killers have been tapped to perform on the two-hour extravaganza, which will culminate with the crowning of a new champion, NBC said Wednesday.






An additional special guest will be named at a later date, the network added.


Rihanna will perform her song “Diamonds,” while “American Idol” alum Clarkson – who has served as a guest mentor on the show, as well as hosting the rival singing competition “Duets” – is set to sing “Catch My Breath.”


The Killers, meanwhile, will play their single “Runaways,” and Mars will debut the song “When I Was Your Man” from his sophomore album “Unorthodox Jukebox,” which was released Tuesday.


The season finale of “The Voice” will air live on December 18 at 8 p.m.


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Dozens sue pharmacy, but compensation uncertain






NASHVILLE, Tenn. (AP) — Dennis O’Brien rubs his head as he details ailments triggered by the fungal meningitis he developed after a series of steroid shots in his neck: nausea, vomiting, dizziness, drowsiness, blurred vision, exhaustion and trouble with his speech and attention.


He estimates the disease has cost him and his wife thousands of dollars in out-of-pocket expenses and her lost wages, including time spent on 6-hour round trip weekly visits to the hospital. They’ve filed a lawsuit seeking $ 4 million in damages from the Massachusetts pharmacy that supplied the steroid injections, but it could take years for them to get any money back and they may never get enough to cover their expenses. The same is true for dozens of others who have sued the New England Compounding Center.






“I don’t have a life anymore. My life is a meningitis life,” the 59-year-old former school teacher said, adding that he’s grateful he survived.


His is one of at least 50 federal lawsuits in nine states that have been filed against NECC, and more are being filed in state courts every day. More than 500 people have gotten sick after receiving injections prepared by the pharmacy.


The lawsuits allege that NECC negligently produced a defective and dangerous product and seek millions to repay families for the death of spouses, physically painful recoveries, lost wages and mental and emotional suffering. Thirty-seven people have died in the outbreak.


“The truth is the chance of recovering damages from NECC is extremely low,” said John Day, a Nashville attorney who represents several patients who have been sickened by fungal meningitis.


To streamline the process, attorneys on both sides are asking to have a single judge preside over the pretrial and discovery phases for all of the federal lawsuits.


This approach, called multidistrict litigation, would prevent inconsistent pretrial rulings and conserve resources of all parties. But unlike a class-action case, those lawsuits would eventually be returned to judges in their original district for trial, according to Brian Fitzpatrick, a law professor at Vanderbilt University Law School in Nashville.


Even with this approach, Fitzpatrick noted that federal litigation is very slow, and gathering all the evidence, records and depositions during the discovery phase could take months or years.


“Most of the time what happens is once they are consolidated for pretrial proceedings, there is a settlement, a global settlement between all the lawyers and the defendants before anything is shipped back for trial,” he said.


A lawyer representing NECC, Frederick H. Fern, described the consolidation process as an important step.


“A Boston venue is probably the best scenario,” Fern said in an email. “That’s where the parties, witnesses and documents are located, and where the acts subject to these complaints occurred.”


Complicating efforts to recover damages, attorneys for the patients said, NECC is a small private company that has now recalled all its products and laid off its workers. The company’s pharmacy licenses have been surrendered, and it’s unclear whether NECC had adequate liability insurance.


Fern said NECC has insurance, but they were still determining what the policy covers.


But Day says, “It’s clear to me that at the end of the day, NECC is not going to have sufficient assets to compensate any of these people, not even 1 percent.”


As a result, many attorneys are seeking compensation from other parties. Among the additional defendants named in lawsuits are NECC pharmacist and co-founder Barry Cadden; co-founder Greg Conigliaro; sister company Ameridose and its marketing and support arm, Medical Sales Management.


Founded in 2006 by Cadden and Conigliaro, Ameridose would eventually report annual revenue of $ 100 million. An NECC spokesman didn’t respond to a request for the pharmacy’s revenue.


While Federal Drug Administration regulators have also found contamination issues at Westborough, Mass.-based Ameridose, the FDA has said it has not connected Ameridose drugs to infection or illness.


Under tort law, a lawsuit has to prove a defendant has a potential liability, which in this case could be anyone involved in the medical procedure. However, any such suit could take years and ultimately may not be successful.


“I would not be surprised if doctors, hospitals, people that actually injected the drugs, the people that bought the drugs from the compounding company, many of those people will also be sued,” said Fitzpatrick.


Plaintiffs’ attorneys said they’re considering that option but want more information on the relationships between the compounding pharmacy and the hundreds of hospitals and clinics that received its products.


Day, the attorney in Tennessee, said the clinics and doctors that purchase their drugs from compounding pharmacies or manufacturers could be held liable for negligence because they are in a better position to determine the safety of the medicine than the patients.


“Did they use due care in determining from whom to buy these drugs?” Day said.


Terry Dawes, a Michigan attorney who has filed at least 10 federal lawsuits in the case, said in traditional product liability cases, a pharmaceutical distributor could be liable.


“We are looking at any conceivable sources of recovery for our clients including pharmaceutical supply places that may have dealt with this company in the past,” he said.


Ten years ago, seven fungal meningitis illnesses and deaths were linked to injectable steroid from a South Carolina compounding pharmacy. That resulted in fewer than a dozen lawsuits, a scale much smaller than the litigations mounting up against NECC.


Two companies that insured the South Carolina pharmacy and its operators tried unsuccessfully to deny payouts. An appellate court ruled against their argument that the pharmacy willfully violated state regulations by making multiple vials of the drug without specific prescriptions, but the opinion was unpublished and doesn’t set a precedent for the current litigation.


The lawsuits represent a way for patients and their families recover expenses, but also to hold the pharmacy and others accountable for the incalculable emotional and physical toll of the disease.


A binder of snapshots shows what life is like in the O’Briens’ rural Fentress County, Tenn., home: Dennis hooked up to an IV, Dennis in an antibiotics stupor, bruises on his body from injections and blood tests. He’s had three spinal taps. His 11-day stay in the hospital cost over $ 100,000, which was covered by health insurance.


His wife said she sometimes quietly checks at night to see whether her husband of 35 years is still breathing.


“In my mind, I thought we were going to fight this and get over it. But we are not ever going to get over it,” said Kaye O’Brien.


Marjorie Norwood, a 59-year-old grandmother of three who lives in Ethridge, Tenn., has spent just shy of two months total in the hospital in Nashville battling fungal meningitis after receiving a steroid injection in her back. She was allowed to come home for almost a week around Thanksgiving, but was readmitted after her symptoms worsened.


Family members are still dealing with much uncertainty about her recovery, but they have not filed a lawsuit, said their attorney Mark Chalos. He said Norwood will likely be sent to a rehabilitation facility after her second stay in the hospital rather than return home again.


Marjorie Norwood’s husband, an autoworker, has taken time off work to care for her and they depend on his income and insurance.


“It doesn’t just change her life, it changes everyone else’s life around her because we care about her and want her to be happy and well and have everything that she needs,” said her daughter, Melanie Norwood.


Medications/Drugs News Headlines – Yahoo! News


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