A preliminary settlement has been reached in the Peanut Corporation of American products liability suit. If you recall, a nationwide Salmonella outbreak in 2008 and 2009 was associated with peanut products produced at facilities in Georgia and Texas. Peanut Corporation of America, a Lynchburg, Virginia, based company has since declared bankruptcy, but an insurance policy will pay $12 million in injury claims.
The settlement will reportedly compensate more than 120 people that have filed personal injury claims. During the outbreak, it was reported that nine people died and more than 700 individuals became ill, including 45 children that suffered serious illnesses. In all, almost 3,500 products ended up being recalled because they contained or may have come in contact with the contaminated peanut products.
Most of the particular settlements are not yet known, but it has been reported that one West Virginia will receive $2 million and the family of an Alabama woman will receive $1 million. Most of the salmonella-related claims are believed to pay out under $100,000 each. Before the settlement can be finalized, it will have to be approved by a bankruptcy judge.
While some have seen the settlement as good news for those waiting for compensation, others have expressed disappointment that the settlement did not provide more for the injured. One Vermont resident, whose child was hospitalized for nearly a week after eating the contaminated peanut butter, expressed her dissatisfaction by saying that a company as large as Peanut Corporation of America should have been required to carry more insurance to compensate the individuals harmed in situations like these.
$12 Million Settlement Recommended in Peanut Case (Food Safety News)