President’s pot comments prompt call for policy

SAN FRANCISCO (AP) — President Barack Obama says he won’t go after pot users in Colorado and Washington, two states that just legalized the drug for recreational use. But advocates argue the president said the same thing about medical marijuana — and yet U.S. attorneys continue to force the closure of dispensaries across the U.S.

Welcome to the confusing and often conflicting policy on pot in the U.S., where medical marijuana is legal in many states, but it is increasingly difficult to grow, distribute or sell it. And at the federal level, at least officially, it is still an illegal drug everywhere.

Obama’s statement Friday provided little clarity in a world where marijuana is inching ever so carefully toward legitimacy.

That conflict is perhaps the greatest in California, where the state’s four U.S. Attorneys criminally prosecuted large growers and launched a coordinated crackdown on the state’s medical marijuana industry last year by threatening landlords with property forfeiture actions. Hundreds of pot shops went out of business.

Steve DeAngelo, executive director of an Oakland, Calif., dispensary that claims to be the nation’s largest, called for a federal policy that treats recreational and medical uses of the drug equally.

“If we’re going to recognize the rights of recreational users, then we should certainly protect the rights of medical cannabis patients who legally access the medicine their doctors have recommended,” he said.

The government is planning to soon release policies for dealing with marijuana in Colorado and Washington, where federal law still prohibits pot, as elsewhere in the country.

“It would be nice to get something concrete to follow,” said William Osterhoudt, a San Francisco criminal defense attorney representing government officials in Mendocino County who recently received a demand from federal investigators for detailed information about a local system for licensing growers of medical marijuana.

Assemblyman Tom Ammiano said he was frustrated by Obama’s comments because the federal government continues to shutter dispensaries in states with medical marijuana laws, including California.

“A good step here would be to stop raiding those legal dispensaries who are doing what they are allowed to do by law,” said the San Francisco Democrat. “There’s a feeling that the federal government has gone rogue on hundreds of legal, transparent medical marijuana dispensaries, so there’s this feeling of them being in limbo. And it puts the patients, the businesses and the advocates in a very untenable place.”

Obama, in an interview with ABC’s Barbara Walters, said Friday that federal authorities have “bigger fish to fry” when it comes to targeting recreational pot smokers in Colorado and Washington.

Some advocates said the statement showed the president’s willingness to allow residents of states with marijuana laws to use the drug without fear of federal prosecution.

“It’s a tremendous step forward,” said Joe Elford, general counsel for Americans for Safe Access. “It suggests the feds are taking seriously enough the idea that there should be a carve-out for states with marijuana laws.”

Obama’s statements on recreational use mirror the federal policy toward states that allow marijuana use for medical purposes.

“We are not focusing on backyard grows with small amounts of marijuana for use by seriously ill people,” said Lauren Horwood, a spokeswoman for U.S. Attorney Benjamin Wagner in Sacramento. “We are targeting money-making commercial growers and distributors who use the trappings of state law as cover, but they are actually abusing state law.”

Alison Holcomb, who led the legalization drive in Washington state, said she doesn’t expect Obama’s comment to prompt the federal government to treat recreational marijuana and medical marijuana differently.

“At this point, what the president is looking at is a response to marijuana in general. The federal government has never recognized the difference between medical and non-medical marijuana,” she said. “I don’t think this is the time he’d carve out separate policies. I think he’s looking for a more comprehensive response.”

Washington voters approved a medical marijuana law in 1998, and dispensaries have proliferated across the state in recent years.

Last year, Gov. Chris Gregoire vetoed legislation that would have created a state system for licensing medical dispensaries over concern that it would require state workers to violate the federal Controlled Substances Act.

For the most part, dispensaries in western Washington have been left alone. But federal authorities did conduct raids earlier this year on dispensaries they said were acting outside the state law, such as selling marijuana to non-patients. Warning letters have been sent to dispensaries that operate too close to schools.

“What we’ve seen is enforcement of civil laws and warnings, with a handful of arrests of people who were operating outside state law,” said Alison Holcomb, who led Washington’s legalization drive and helped write the bill that Gregoire vetoed. of

Eastern Washington has seen more raids because the U.S. attorney there is more active, Holcomb added.

Colorado’s marijuana measure requires lawmakers to allow commercial pot sales, and a state task force that will begin writing those regulations meets Monday.

State officials have reached out to the Justice Department seeking help on regulating a new legal marijuana industry but haven’t heard back.

DeAngelo said Friday that the Justice Department should freeze all pending enforcement actions against legal medical cannabis providers and review its policies to make sure they’re consistent with the president’s position. He estimated federal officials have shuttered 600 dispensaries in the state and 1,000 nationwide.

DeAngelo’s Harborside Health Center is facing eviction after the U.S. attorney in San Francisco pressured his landlord to stop harboring what the government considers an illegal business.

“While it’s nice to hear these sorts of positive words from the president, we are facing efforts by the Justice Department to shut us down, so it’s hard for me to take them seriously,” DeAngelo said.

The dispensary has a hearing Thursday in federal court on the matter.

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Associated Press writers Terry Collins in San Francisco and Manuel Valdes in Seattle contributed to this report.

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HMRC warns 300,000 late filers

13 December 2012 Last updated at 19:06 ET

About 300,000 people who have failed to send in their tax returns for 2010-11 could soon see their goods seized.

The taxman is sending warning letters to those who have now run up late-filing penalties of £1,300 for that year, under self-assessment.

They can still pay, or ask for the penalty to be taken off their income in 2013-14 if they are in the PAYE system.

The letters are part of a continuing campaign against a persistent minority of non-filers.

A spokesman for HM Revenue & Customs (HMRC) said the defaulters could still pay their fines, and submit the late tax returns.

“These non-filers have ignored numerous communications from HMRC, dating back to April 2011, including flyers, reminder letters, penalty notices and warning letters,” he said.

“A customer can still phone us if they think they should not be in self-assessment, and will be taken through a number of questions to indicate if they should be in self-assessment or not.

“If they shouldn’t have been in it for 2010-11, penalties will then be waived,” he added.

About 7,000 higher-rate taxpayers who had missed tax returns from earlier years were sent similar warning letters in October.

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Adele’s “21″ is top-selling U.S. iTunes album of 2012

LOS ANGELES (Reuters) – British singer Adele notched another accolade on Thursday as iTunes announced that her Grammy-winning album “21″ was the top-selling record of 2012 in its U.S. store, extending the disc’s successful run almost two years after it was released.

Adele, 24, who last year became the first artist to secure three iTunes milestones with top-selling album, single and artist of the year, came in ahead of country-pop star Taylor Swift‘s “Red” and British folk band Mumford & Sons‘ “Babel.”

ITunes did not reveal its sales or download figures.

British boy band One Direction’s debut album “Up All Night” and current Grammy nominees fun.’s debut “Some Nights” rounded out the five top-selling albums on iTunes in the United States.

“21,” released in February 2011, has performed strongly in the U.S. music charts this year following the singer’s Grammy-sweeping win in six categories in February 2012.

Adele also landed Screen Actors Guild and Golden Globe nominations for her sultry James Bond theme song “Skyfall” this week, becoming a strong contender in the best song category for Hollywood’s awards season.

“Thank you so much for the honor of being included in something as brilliant as the Golden Globes! Never in a million years did I ever think I’d come close to such a thing! Truly wonderful … thank you to the Bond family for giving me the opportunity,” the singer said in a statement on Thursday.

ITunes U.S. compiled their Best of 2012 list by looking at the most downloaded items from the Apple iTunes store.

Canadian pop star Carly Rae Jepsen had the top-selling track for her infectious breakthrough summer single “Call Me Maybe.”

Post-apocalyptic action film “The Hunger Games” was the best-selling movie while the second season of British aristocratic period drama “Downton Abbey,” another Hollywood awards favorite, was iTunes’ top-selling television series.

The iTunes Best of 2012 lists can be seen at www.itunes.com/AppStoreBestof2012

(Reporting by Piya Sinha-Roy, editing by Jill Serjeant and Mohammad Zargham)

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China, S.Africa suspend Brazil beef over BSE doubt

BRASILIA (Reuters) – China and South Africa informed Brazil on Thursday that they were suspending imports of beef from the world’s biggest exporter of the meat following a case of atypical BSE that was confirmed last week, Brazilian agriculture ministry officials said.

Including Japan, which suspended imports on Monday, three countries have now restricted purchases of beef from Brazil while seeking details about the death of an elderly cow in 2010 which never actually developed the disease.

None of these countries are significant buyers of Brazilian beef. Brazil’s top customer, Russia, has so far imposed no such restrictions, though it said on Thursday that it was weighing its options.

Brazil has launched a diplomatic offensive to clarify the details of the case of suspected atypical BSE, which it has been at pains to differentiate from regular BSE – known as mad cow disease – which is usually caused by contaminated feed.

Atypical BSE can arise in elderly cattle due to a spontaneous genetic mutation that causes it to begin producing distorted proteins known as prions. The proteins can trigger BSE, which eventually destroys the animal’s nervous system, and it is believed humans ingesting beef from a stricken animal can contract a fatal form of the disease.

The 13-year-old cow in southern Brazil tested positive for prions, a result confirmed by the World Organization for Animal Health (OIE) last week. But it died of other causes in 2010 and never actually developed the disease.

The animal was buried on the farm where it had been used for breeding purposes and never entered the food chain.

Outbreaks of mad cow disease in Europe, North America and Japan in the past decade, following an epidemic in Great Britain in the late 1980s, prompted some importers to embargo shipments and roiled the industry on several occasions.

In April, the United States reported a case of atypical BSE in an animal which never entered the food chain, but the country escaped a backlash from importers.

The Brazilian agriculture ministry’s secretary for animal and plant health, Enio Pereira, told Reuters this week that much of the two-year delay between the cow’s death and confirmation of prions in its tissue was caused by a logistical anomaly at the laboratory.

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Europe deepens union with ECB as chief bank watchdog

BRUSSELS (Reuters) – Europe clinched a deal on Thursday to give the European Central Bank new powers to supervise euro zone banks from 2014, embarking on the first step in a new phase of closer integration to help underpin the euro.

After more than 14 hours of talks and following months of tortuous negotiations, finance ministers from the European Union‘s 27 countries agreed to hand the ECB the authority to directly police at least 150 of the euro zone’s biggest banks and intervene in smaller banks at the first sign of trouble.

“This is a big first step for banking union,” EU Commissioner Michel Barnier told a news conference. “The ECB will play the pivotal role, there’s no ambiguity about that.”

The euro rose to a session high in Tokyo of 1.3080 against the U.S. dollar on news of the deal.

After three years of piecemeal crisis-fighting measures, agreeing on a banking union lays a cornerstone of wider economic union and marks the first concerted attempt to integrate the bloc’s response to problem banks.

The new system of supervision should be up and running by March 1, 2014, following talks with the European Parliament, although ministers agreed that could be delayed if the ECB needed longer to prepare itself.

The plan sets in motion one of the biggest overhauls of any European banking system since the financial crisis began in mid-2007 with the near collapse of German lender IKB.

The onus is now on EU leaders, who meet in Brussels on Thursday and Friday, to give it their full political backing.

In an about-turn, German Finance Minister Wolfgang Schaeuble dropped earlier objections that had led him to clash openly with his French counterpart, Pierre Moscovici, last week over the ECB’s role in banking supervision.

With time running out to meet a year-end deadline, both sides managed to settle their differences and Germany won concessions to temper the authority of the ECB’s Governing Council over the new supervisor.

Agreement on bank surveillance is a crucial first step towards a broader banking union, or common euro zone approach to dealing with failing banks that in recent years dragged down countries such as Ireland and Spain.

The next pillar of a banking union would be the creation of a central system to close troubled banks.

The decision also sends a strong signal to investors that the euro zone’s 17 members, from powerful Germany to stricken Greece, can pull together to tackle the bloc’s problems.

‘STEP BY STEP’

Other difficult issues remain.

At a summit in June, EU leaders pledged that once a common bank supervisor was in place, the bloc’s rescue mechanism would have the power to directly recapitalize struggling banks.

Countries like France, Italy and Spain are keen for those powers to be in place as soon as possible. But Germany, worried it could be forced to foot the bill for struggling banks across the bloc, is not in a rush.

“We have reached the main points to establish a European banking supervisor that should take on its work in 2014,” Schaeuble told reporters. “We stand by what we agreed, to bring Europe forward step by step.”

In the longer term, there is also disagreement over how the burden of winding down failed banks should be shared.

The deal foresees banks with assets of 30 billion euros, or larger than one-fifth of their country’s economic output, being supervised by the ECB rather than national supervisors.

France’s Moscovici said that would put more than 150 banks under the ECB’s watch.

Critically, it also gives the ECB authority to widen its authority to smaller banks if problems arise.

That will satisfy Germany, which wanted to maintain primary oversight of its savings and cooperative banks, nearly all of which will not fall under direct surveillance from Frankfurt unless they run into problems.

CONCESSIONS

Talks ran into the early hours of Thursday because ministers needed to resolve a potential conflict of interest between the ECB’s roles as supervisor and as guardian of monetary policy.

Such a conflict could arise if, for example, the ECB were to keep interest rates low to prop up banks.

They agreed to introduce a mediation panel to resolve disputes with national supervisors, a move Germany was satisfied would act as a counterbalance to the authority of the European Central Bank’s Governing Council.

A steering committee will guide the work of the supervisory body, which in turn is answerable to the ECB’s Governing Council. That leaves the final say with the ECB.

Reaching a deal also required granting concessions to Britain, a member of the European Union that does not use the euro, which worried that the ECB would undermine its autonomy in policing the City of London, Europe’s top financial centre.

London had asked for changes to the system of voting when regulators from across the European Union meet to flesh out EU law, such as defining the capital reserves that banks can use as buffers.

Those regulators meet under the umbrella of the European Banking Authority, but London had been concerned that countries in the euro zone would force through rules in their favor.

EU ministers agreed that a double vote would now take place – one for those in the banking union and another for non-euro countries outside – before decisions on EU regulation are taken.

(Additional reporting by Jan Strupczewski, Luke Baker, Noah Barkin and Leigh Thomas; Editing by Peter Cooney)

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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.

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Associated Press writer Christopher Toothaker contributed to this report.

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Google Maps makes its way back to the iPhone

(Reuters) – Google‘s navigation tool has returned to the iPhone, months after Apple‘s home-grown mapping service flopped, prompting user complaints, the firing of an executive and a public apology from Apple’s CEO.

The Google Maps app will be compatible with any iPhone or iPod Touch that runs iOS 5.1 or higher, the company said in a blog post. (http://link.reuters.com/jek64t)

Apple launched its own service in early September, and dropped Google Maps, when it launched the iPhone 5 and rolled out iOS 6, an upgrade to its mobile software platform.

Users complained that Apple’s new map service, based on Dutch navigation equipment and digital map maker TomTom’s data, contained errors and lacked features that made Google Maps popular.

In October, Scott Forstall, a long-time lieutenant of late Apple co-founder Steve Jobs, was asked to leave the company partly because of his refusal to take responsibility for the mishandling of the mapping software.

While Apple Maps offered soaring ‘flyover’ views of major cities, it had no public transit directions, limited traffic information, and obvious mistakes such as putting one city in the middle of the ocean.

This led to Apple chief executive Tim Cook apologizing to customers frustrated with the service and, in an unusual move for the U.S. consumer group, directed them to rival services such as Google’s Maps instead.

(Reporting by Tej Sapru and Ankur Banerjee in Bangalore; Editing by Chris Gallagher and Dan Lalor)

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Margo Martindale joins FX’s “The Americans”

NEW YORK (TheWrap.com) – Margo Martindale, who won an Emmy for her role on FX’s “Justified,” is returning to the network on the new spy series “The Americans.”

The show, which stars Matthew Rhys and Keri Russell as an undercover KGB couple in Reagan-era America, premieres January 30. Martindale has signed on to appear in at least eight episodes as “Claudia,” a KGB illegal who delivers assignments to the couple.

The casting reunites Martindale with “Justified” creator Graham Yost, an executive producer of “The Americans.” Martindale won the Emmy Award for Outstanding Supporting Actress in a Drama Series for her performance as Mags Bennett on “Justified.”

Since her exit from the show, Yost has talked about how much he misses working with the actress.

“What I do regret is just not having Margo on the show, in that she’s such a tremendous actress and such a great person,” he told TheWrap. “That was the hard part.”

Since leaving “Justified,” Martindale has appeared on CBS’s now-canceled “A Gifted Man” and has signed on for Showtime’s “Masters of Sex.”

“The Americans” was created by former CIA agent Joe Weisberg, who also executive produces. Besides Yost, it is also executive produced by Joel Fields and Amblin Television heads Justin Falvey and Darryl Frank. The series is produced by Fox Television Studios and FX Productions.

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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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