Salmonella Litigants Close to Settling Claims Against Peanut Corp.

A magistrate judge has reportedly recommended that the trustee in bankruptcy for the Peanut Corp. of America (PCA), responsible for a Salmonella outbreak linked to nine deaths and hundreds of illnesses, distribute $12 million to resolve the tort claims of 120 individuals. The deal, which must be approved by a U.S. district court, involves insurance funds provided by Hartford Casualty Co. in 2009 and will apparently be supplemented by additional undisclosed funds from Kellogg Co. Virginia-based PCA recalled its peanut products and closed plants in Georgia and Texas following an outbreak that also led to a massive recall of processed foods containing the company’s peanut paste, such as snack products, cookie dough, granola bars, and dog biscuits. See Product Liability Law 360, August 26, 2010.