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Marler Blog Providing Commentary on Food Poisoning Outbreaks & Litigation

$12 Million to be divided between 123 Peanut Corporation of America Victims Within the Next Week

Bryan Gentry of the Lynchburg News & Advance covered a recent hearing of the Bankruptcy Court overseeing the Peanut Corporation of America (PCA) bankruptcy. Mr. Gentry noted that “[m]ore than a year after a nationwide salmonella outbreak, victims and surviving relatives have not received any money in insurance policies held by [PCA] that a bankruptcy court judge said they should share.”

The good news is that is going to be changing soon. Within the next week, $12,000,000 will be divided between 123 people (or families) who filed claims with the bankruptcy court. In my opinion, $12,000,0000 is about $8,000,000 – $10,000,0000 short of what the actual value of the claims are. The differential will necessarily need to be picked up by re-manufacturers such as Kellogg or King Nut.

One year ago, the CDC announced that over 700 people were sickened and nine died as a result of PCA Salmonella-tainted peanut butter.