News - Motion Filed to Compel Distributions in NECC Bankruptcy/MDL Proceedings

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 A hearing was held on the afternoon of August 16 before Judge Zobel in the federal district court in Massachusetts addressing primarily motions filed to compel distributions to claimants.  Attached is a copy of the motion to compel distributions we filed on behalf our clients and on behalf of other claimants here in Indiana.  The primary factor delaying distributions at this point is the lack of agreement with Medicare and its administrator, CMS, regarding resolution of Medicare liens.  There is a proposed agreement with Medicare to resolve those liens, but it requires approval by the Department of Justice, and that approval has not yet been secured.  There has been great frustration by attorneys throughout the country, and even more by their clients regarding the delay in reaching such an agreement that would allow distributions to go forward.

 
At the hearing, Judge Zobel directed counsel for CMS and the Department of Justice and counsel for the Plaintiffs’ Steering Committee to undertake immediate and intensive meetings and negotiations to resolve any outstanding issues regarding resolution of Medicare liens.  The court is holding another status conference next Thursday, August 25, and she asked for a report that would hopefully advise that agreement had been reached on resolution of the Medicare liens.  
 

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