Tentative settlement' reached Whatever Happened To: 'Tentative settlement' reached in hepatitis lawsuit involving Roanoke restaurant chain

Hepatitis A is a virus that causes liver infection that can lead to liver inflammation and, in some cases, liver failure.

The virus is found in the blood and feces of infected persons, and can be spread through sexual contact, ingestion of contaminated fecal matter or, for intravenous drug users, through sharing needles with an infected person.

Large-scale outbreaks, such as the one that began at Famous Anthony's in Roanoke, are caused when an infected person's blood or fecal matter contaminates food or beverages, or surfaces that patrons touch immediately before eating, such as menus and utensils.

During late summer 2021, 50 people were sickened and four died as a result of a hepatitis A outbreak that was traced to several Famous Anthony's restaurants in Roanoke.

More than a year later, more than 30 victims, or victims' estates, have filed lawsuits against Famous Anthony's. Litigation is ongoing, although a tentative settlement has been reached, according to a plaintiffs' attorney.

Famous Anthony's filed for bankruptcy at the two locations where an infected employee worked, leaving the litigation split between two courts, the federal Western District of Virginia Bankruptcy Court and Roanoke Circuit Court.

The district court's case will decide where to cap the amount of money Famous Anthony's insurance provider, Cincinnati Insurance Co., is liable to pay.

Bill Marler, a Seattle-based attorney representing 32 of the victims suing Famous Anthony's, is seeking a total of $14 million from Cincinnati Insurance for both infection via food and infection via surface contamination.

The Roanoke health department has said the virus was spread by an employee who worked at three Famous Anthony's locations, although all of the victims to date have said they dined at either the Grandin Road Extension or Williamson Road sites.

The unidentified employee did not know at the time that he or she had hepatitis A, which generally does not produce symptoms for the first two weeks, which is also the period in which it is most contagious.

The employee had multiple duties, which included cooking, waiting on tables and greeting customers as they came into the restaurant.

According to Marler, while the unnamed employee determined to be the starting point for the infection's work specifically involved handling food, some of the infections occurred on days the person was not working at the restaurant.

Microscopic amounts of fecal matter from the employee, who is suspected of inadequate hand-washing after using the bathroom, was spread to food that was then consumed by the public, according to one of the lawsuits filed in Roanoke Circuit Court.

Cincinnati Insurance's lawyers dispute this claim, saying in a petition filed in the district court that proving certain victims were infected via surface contact rather than food consumption was "impossible."

The bankruptcy court, which will eventually be the entity in charge of distributing settlement money, brought in a medical claims analyst to determine how much each victim could seek in damages.

The recommendation of the claims analyst was presented during a hearing on Dec. 22, shortly before a tentative settlement was reached between Cincinnati Insruance and the victims.

While the amount of money the analyst suggested was owed to victims was not made public, with medical costs from the outbreak alone coming to more than $6 million, attorney Marler said before the hearing that he expected the analyst's recommendation to be well over both the $7 million and $14 million sums.

"I believe the recommendation will be a very significant eight-figure sum," he said.

Andrew Goldstein, a lawyer representing Famous Anthony's, said that while each restaurant in the chain is franchised by Famous Anthony's, they are operated independently, allowing only the affected locations to file for bankruptcy, rather than the company as a whole.

Goldstein added that Famous Anthony's itself was not disputing whether or not the insurance payments should be $14 million, rather than $7 million, which is a matter only contested by the insurance provider.

The recent tentative settlement will likely determine how much money will be paid to victims, according to Marler, who added he could not confirm which amount the insurance company agreed to pay until after the matter was officially settled in court.

The outbreak that began at Famous Anthony's has, according to the Roanoke and Alleghany Regional Health Districts, is no longer considered ongoing. Since January of this year, 91 cases of hepatitis A have been reported in the region, resulting in 62 hospitalizations.

"The cases that we have seen since Jan. 1 of this year have largely been among the population of people who use injection drugs," Christie Wills, a spokesperson for the Roanoke and Alleghany Regional Health Districts, said.

Hepatitis A causes liver inflammation. In addition to the virus being spread through fecal to oral transmission, people can become ill from using drugs with others, certain types of sexual contact or caring for someone else who has been infected.

The hepatitis A vaccine is still free to people in the region due to the outbreak, and the health department holds weekly vaccination clinics in Roanoke at 1502 Williamson Road Northeast.

Information on when and where the clinics take place can be found on the Roanoke City and Alleghany Regional Health Districts' website at www.vdh.virginia.gov/roanoke/

Staff writer Laurence Hammack contributed information to this report.