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Friday, October 02, 2009

Bankruptcy Judge Orders $12M Fund for Peanut Victims

Yesterday, a U.S. bankruptcy judge ordered the insurance company for Peanut Corporation of America to earmark $12 million for a fund that will be used to reimburse victims who developed health problems after eating contaminated peanut products earlier this year.

To receive reimbursement, all victims must submit their claims to the claims administrator by October 31.

Peanut Corporation of America has faced a series of lawsuits involving a variety of peanut butter products tainted with salmonella. Investigations by health inspectors found that Peanut Corporation of America knowingly distributed tainted products to manufacturers for use in their retail products. Food products made with the tainted peanut butter included cookies, cakes, candies, crackers, and ice cream. These products were sold at grocery stores nationwide.

Hundreds of consumers suffered serious illnesses from the salmonella-contaminated peanut butter products, and at least nine people died from their consumption. After the injuries were made public, Peanut Corporation of America recalled hundreds of products containing the contaminated peanut butter.

Last February, Peanut Corporation of America declared bankruptcy after it became clear they were facing a multitude of lawsuits for their negligent actions.

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