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Marler Blog Providing Commentary on Food Poisoning Outbreaks & Litigation

Marler Clark Clients to Share in $12 Million Settlement against Peanut Corporation of America

According to the Atlanta Journal Constitution and AP, over 100 victims of last year’s nationwide salmonella outbreak will split $12 million as part of a bankruptcy settlement with the insurer of the company linked to the illnesses.

The attorney for the bankruptcy trustee, Atlanta attorney Alan Maxwell said Monday the money comes from an insurance policy that Lynchburg, Va.-based Peanut Corp. of America had with Hartford Financial Services Group Inc. The settlement could be doled out to more than 100 victims or their survivors who filed a claim.

Lawsuits against Kellogg Co. and King Nut Co. are still pending.

The outbreak was traced to the company’s plants in Georgia and Texas. It sickened about 700 people and was linked to at least nine deaths. Peanut Corp. has since filed for bankruptcy and authorities have allegedly launched a criminal investigation.