Gunman's Father and Brother Are 'in Shock,' Says a Source









12/14/2012 at 08:50 PM EST







State police personnel lead children to safety away from the Sandy Hook Elementary School


Shannon Hicks/Newtown Bee/Reuters/Landov


The father and older brother of the gunman who was blamed for the Connecticut school shooting are being questioned by authorities but are not suspects, a law enforcement source tells PEOPLE.

The Associated Press reports that the gunman has been identified as 20-year-old Adam Lanza.

His unidentified father, who lives in New York City, and his older brother, Ryan, 24, of Hoboken, N.J., are "in shock," the law enforcement source tells PEOPLE.

They were being questioned by the FBI in the Hoboken police station but "are not suspects, they have no involvement," the source says.

"Imagine the 24 year old – he's lost his mother. Imagine the father, his son killed 20 kids," the source says."   

As for Adam, "It looks like there's mental history there," the law enforcement source says.

Adam Lanza died at the scene of the shooting that killed 20 children and six adults at the Sandy Hook Elementary School in Newtown, Conn.

His mother, Nancy Lanza, was found dead at her home, according to CNN.

The source describes the weapons used by Lanza as "legitimate." According to CNN, Lanza used two hand guns that were registered to his mother and a rifle.

Adam's parents were no longer together, the source says.   

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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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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."


Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.


"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.


"Next week is going to be a Capitol Hill-driven market."


With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.


Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.


"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.


"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."


Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.


BEWARE OF THE WITCH


This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.


"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.


RETHINKING APPLE


Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.


Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.


On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.


"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.


But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.


(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Panetta Orders Deployment of U.S. Anti-Missile Units in Turkey





INCIRLIK AIR BASE, Turkey — Defense Secretary Leon E. Panetta signed an official deployment order on Friday to send 400 American military personnel and two Patriot air defense batteries to Turkey as cross-border tensions with Syria intensify.




The American batteries will be part of a broader push to beef up Turkey’s defenses that will also include the deployment of four other Patriot batteries — two from Germany and two from the Netherlands.


All six units will be under NATO’s command and are scheduled to be operational by the end of January, according to officials in Washington.


George Little, the Pentagon spokesman, said Mr. Panetta signed the order as he flew from Afghanistan to this air base in southern Turkey, close to the border with Syria.


“The United States has been supporting Turkey in its efforts to defend itself,” Mr. Little said.


The order “will deploy some 400 U.S. personnel to Turkey to support two Patriot missile batteries,” Mr. Little added, and the personnel and Patriot batteries will arrive in Turkey “in coming weeks.” He did not disclose where the Patriots would be located.


After landing at Incirlik Friday, Mr. Panetta told a gathering of American Air Force personnel of his decision to deploy the Patriots.


He said the United States was working with Turkey, Jordan and Israel to monitor Syria’s stockpiles of chemical weapons, and warned of “serious consequences” if Syria used them, but he did not offer any specifics.


“We have drawn up plans for presenting to the president,” Mr. Panetta said. “We have to be ready.”


Turkey, which has been supporting the Syrian opposition to President Bashar al-Assad, has been worried it is vulnerable to Syrian missiles, including Scuds that might be tipped with chemical weapons. Those concerns were heightened by reports of increased activity at some of Syria’s chemical sites, though Mr. Panetta said this week that intelligence about chemical weapons activity in Syria had “leveled off.”


The recent Scud missile attacks mounted by forces loyal to Mr. Assad against rebels in northern Syria have only added to Turkey’s concerns. The Scud missiles fired at the rebels were armed with conventional warheads, but the attacks showed that the Assad government is prepared to use missiles as it struggles to slow rebel gains.


Syria denied Thursday that it had fired Scud missiles this week. But NATO’s secretary general, Anders Fogh Rasmussen, said that the intelligence gathered by the alliance indicated that they were Scud-type missiles. “In general, I think the regime in Damascus is approaching collapse,” he said. “I think now it’s only a question of time.”


NATO foreign ministers last week endorsed the decision to send Patriot batteries to Turkey. The details of how many each nation would send were not worked out until this week, officials said.


In preparation for the deployment, allied officials had conducted surveys of 10 potential sites, mostly in southeastern Turkey, that could be defended by one or more Patriot batteries.


But NATO nations do not have enough batteries to cover all of the sites. With tensions building with Iran and North Korea defying the United States and its Asian allies by launching a long-range rocket, American officials did not want to send more than a few Patriot batteries to Turkey, especially since it is not clear how long they will be needed.


But NATO diplomats said that the goal was to show enough of a commitment to Turkey’s defense to deter a Syrian attack.


It will take three weeks to ship and deploy the two American Patriot batteries, a Defense Department official said.


One allied official said it might be possible to speed up the deployment of the German and Dutch batteries if necessary. Each of those nations will also send up to 400 troops.


The United States, Germany and the Netherlands are the only NATO members that have the advanced PAC-3 Patriot system.


The Patriot batteries in Turkey will be linked to NATO’s air-defense system. The response by the missile batteries would be nearly automatic, firing interceptor missiles to destroy the target by ramming into it, a tactic the military calls “hit to kill.”


Thom Shanker reported from Incirlik Air Base, Turkey, and Eric Schmitt and Michael R. Gordon from Washington.



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Jane Krakowski: Santa Made My Son Scream




Celebrity Baby Blog





12/13/2012 at 04:00 PM ET



Jack Osbourne Respectfully Declines More Baby Gifts
Neilson Barnard/Getty


Not everyone finds Santa Claus so jolly — namely, Jane Krakowski‘s 20-month-old son, Bennett Robert.


“We went and saw Santa for the first time last weekend,” the actress told PEOPLE at a Bank of America charity event on Wednesday. “We have the classic screaming by the Santa Claus photo. I love it.”


But with Bennett’s latest craze over clothes, St. Nick has it easy when it comes to the toddler’s wish list.


“I don’t know if it’s just his age or because of his parents, but he enjoys getting clothes as gifts,” Krakowski, 44, explains. “Maybe he doesn’t realize that toys are more fun! When he gets a new sweater, he hugs it.”



It’s a busy time of year for the star — who finishes filming the final season of 30 Rock on Dec. 17 — as she prepares to host Christmas dinner at her home for the first time.


But the ending of an era is bittersweet for Krakowski. While she’ll now have extra time with Bennett, the first-time mom found the balance of her professional and personal lives doable during the show’s run.


“It’s been great because I work with other working moms, and Tina Fey is a great example of a multitasking working mom,” she says. “[When 30 Rock is over], I’ll be what they call a stay-at-home actress.”


One thing’s for sure: Krakowski certainly has a lot of love at home to return to.


“The other day [Bennett] grabbed my face and gave me a kiss for the first time,” she shares. “Like he understood what a kiss was. I was like, ‘Okay, that’s it! That’s the whole thing!’”

– Shakthi Jothianandan


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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 .


Read More..

Stock futures briefly turn negative after CPI data

Driving in the rural town of Veazie, Maine, after midnight, a woman accidentally hits what she thinks is an oversized cat. She puts the unconscious animal in her car and drives several miles. In the town of Bangor, Maine, the cat regains consciousness. That’s when the...
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IHT Rendezvous: 'Secret' Arms Deals Provoke Germans

LONDON — There is at least one European export sector that continues to find a ready market around the world — weapons.

In the week in which the European Union received the Nobel Prize for Peace in Oslo, protestors in the Norwegian capital were not alone in pointing out the irony that its member states account for a third of global arms exports.

It is an irony that has a particular resonance in Germany right now, where the government’s decisions on a series of weapons deals have created unease among parliamentarians who complain they were kept in the dark.

Chancellor Angela Merkel, who was among the European leaders in Oslo for Monday’s Nobel award ceremony, has been described as the architect of a new doctrine to boost the country’s weapon sales.

“Germany used to be extremely careful about where it exported its weapons,” wrote Der Spiegel, the German magazine, which has been at the forefront of revelations about Berlin’s weapons policy. “In recent years, however, Chancellor Angela Merkel has shown a preference for sending high-tech armaments abroad rather than German soldiers — even if that means doing business with questionable regimes.”

Legislators and German media have seized on the magazine’s reporting of a secretive federal security committee, chaired by Ms. Merkel, allegedly involved in discussions of high-tech arms sales to countries that include Saudi Arabia, Qatar and Israel.

The latest is the possible sale of state-of-the-art Boxer armored vehicles to the Saudi Royal Guard, which is responsible for protecting the royal family.

Berlin has already approved the sale of up to 270 Leopard 2 tanks to the kingdom in a deal that provoked a fierce debate in Germany.

“Merkel wants to bolster countries that — at least from the German point of view — can provide for stability in their regions,” according to Der Spiegel, which warned it was a risky policy.

But the argument for boosting German weapons exports is economic as much as it is strategic.

“At the end of the day, it’s elementary budgeting,” according to Ben Knight of Deutsche Welle, the German broadcaster.

“Germany, along with most European countries, is in the middle of making drastic cuts in order to bring down its national debt,” he wrote last week. “So instead of costly military operations in the world’s many conflict zones, it has apparently decided to sell more weapons to ‘partner countries’ in those regions. What was once hefty expenditure suddenly becomes vast revenue.”

The so-called Merkel Doctrine has prompted an inevitable backlash from peace advocates and others concerned that German weapons could be used to suppress civil unrest.

Jürgen Grässlin, spokesman for a campaign that opposes arms exports, told Deutsche Welle, “The German government is essentially abetting mass murder in various conflict zones in the world.”

Legislators have also expressed concern that potentially far-reaching decisions are being taken by an inner circle of government without the benefit of parliamentary oversight.

In its latest report on what it described as the secret weapons deals, Der Spiegel this week quoted Markus Löning, the government’s human rights commissioner, as saying, “Citizens have a justified interest in being informed earlier on about arms sales.”

Germany is not alone, of course, in wanting to maximize its weapons sales.

Mark Bromley, a senior researcher at the Stockholm International Peace Research Institute, told Deutsche Welle, “A number of countries in western Europe are seeing declines in defense spending, which is having an impact on both defense acquisitions and production.”

“In an attempt to counter that, several governments — including Germany’s — are getting more focused on the promotion of arms exports to regions where budgets haven’t been cut, including parts of Asia, the Middle East, Africa, and South America.”

As my colleague Judy Dempsey wrote from Berlin earlier this year, not all these markets are in stable, conflict-free, democratic countries.

“This raises the question,” she wrote, “of how Europe can square its commitment to defending human rights with selling weapons to such countries.”

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John McAfee Deported from Guatemala, Back in U.S.















12/13/2012 at 07:50 AM EST







John McAfee in Guatemala


Guatemala's National Police/AP


The latest chapter in the John McAfee saga was written Wednesday, as the anti-virus software pioneer was released from Guatemalan custody and flown to Miami, where he was met by federal officials.

"It was the most gracious expulsion I've ever experienced," McAfee, 67, told ABC News. "Compared to my past two wives that expelled me, this isn't a terrible trip."

He added: "They took me out of my cell and put me on a freaking airplane. I had no choice in the matter."

McAfee is wanted for questioning in the November gunshot murder of a neighbor in Belize. He has denied any wrongdoing, yet fled Belize – going undercover in disguise for several weeks – and sought asylum in Guatemala.

Authorities there arrested him for entering the country illegally. But after an eventful detention, in which McAfee was briefly hospitalized after suffering a nervous collapse, the country evidently felt it prudent to return McAfee to his home soil.

It was not clear Wednesday whether authorities in Miami escorted McAfee away to shield him from the media or because they wanted to question him.

McAfee said he has retained a lawyer in the U.S. and plans to seek a visa for his 20-year-old Belizean girlfriend.

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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.


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