Insurance Coverage Claims Settled in Pistachio Recall Cases

Setton International Foods, which recalled more than 15 million pounds of pistachios in 2009 when Salmonella was detected in a delivery to one of its customers, has reportedly entered a settlement agreement with its insurers in a dispute over coverage for third-party claims. While the terms of the settlement have not been disclosed, a federal court in California has apparently dismissed the claims Setton filed against five insurance companies. According to a news source, Setton claimed that its insurers failed to provide assistance in defending or negotiating the third-party claims, and this purportedly led to the company’s exposure to increased liability. See Product Liability Law 360, January 7, 2011.