Judge recommends $12m settlement in peanut salmonella case

By Caroline Scott-Thomas

- Last updated on GMT

Related tags: Peanut corporation of america

A federal magistrate judge has recommended approval of a $12m settlement for those who became ill or died after eating salmonella-tainted peanut products from the Peanut Corporation of America last year.

The salmonella outbreak originating at the Peanut Corporation of America’s Georgia and Texas plants was linked to more than 700 illnesses and nine deaths across the country. The outbreak also led to the recall of more than 3,900 peanut-containing products from more than 200 companies – one of the largest product recalls in US history.

US Magistrate Judge Michael Urbanski made the recommendation late on Wednesday to give 122 claimants a share of the $12m payout.

According to court documents, recommendations for individual settlements to be paid in the 45 children’s cases range from $19,750 to $395,008, and settlements in the nine wrongful death cases range from $98,752 to $987,520.

Hartford Casualty Insurance, the firm to which the Peanut Corporation of America (PCA) paid premiums to protect it from foodborne illness claims, agreed to the settlement in the fall.

In addition, the Kellogg Company has agreed to pay $1.5m to the families of children who fell ill and $580,000 between the families of two people who died as a result of the outbreak. The company sold Austin and Keebler brand crackers that contained peanut paste supplied by the Peanut Corporation of America (PCA). Kellogg’s was among the first companies to issue voluntary product recalls in connection with the salmonella contamination at PCA’s Georgia plant.

The $12m settlement must now be approved by a bankruptcy court judge, as the Peanut Corporation of America filed for Chapter 7 bankruptcy in February 2009, after salmonella was linked to peanut products from the company in January.

Related news

Show more

Related products

show more

Quinoa syrup, a refreshing option to rice syrup

Quinoa syrup, a refreshing option to rice syrup

Faravelli Inc, food ingredients distributor - North America | 24-Mar-2021 | Product Catalog

Quinoa syrup by Naturis is a 100% natural alternative to rice syrup, ideal for balanced vegan diets.

low in fructose
with lysine...

Snacking: Evolving from mobile to purposeful

Snacking: Evolving from mobile to purposeful

Cargill | 16-Mar-2021 | Technical / White Paper

With the rise of the snacking lifestyle, manufacturers rose to the task of offering options for on-the-go eating. Then came 2020, and consumer mobility...

Maximize supply chain visibility with Muddy Boots

Maximize supply chain visibility with Muddy Boots

TELUS Agriculture | 15-Dec-2020 | Product Brochure

Muddy Boots’ Greenlight Supplier Management helps food manufacturers, processors and retailers boost product quality, reduce waste and delight customers.

Plant-based innovation with oats

Plant-based innovation with oats

Lantmännen Functional Foods | 09-Dec-2020 | Technical / White Paper

Plant-based foods, meat analogues, dairy alternatives and protein-enriched foods and beverages have never been more popular. In this white paper, we look...

Related suppliers

Follow us

Products

View more

Webinars