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Peanut Corp. of America to Pay Settlements

This is a settlement for the Peanut Salmonella lawsuit.

The Peanut Corp. of America (PCA) will give settlement payments to the families of nine victims who died and 44 children who got sick from salmonella-contaminated PCA peanut butter last January, 2009. Kellogg has agreed to pay part of the settlement payments: contaminated peanut ingredients used in its crackers came from PCA.

After PCA filed for bankruptcy, its insurer, The Hartford, created a $12 million fund for wrongful death and personal injury claims. The lawyers of the victims, Attorneys Ron Simon and Bruce Clark, urged the court for expediency. "All of my clients have said, 'We desperately want these settlements. It has been a year and a half,'" said Simon.

Settlement payments to be made include are a $1 million payment to the estate of a woman from Alabama and less than $50,000 for the children and payment for one man may reach about $2 million.

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Published on Aug-23-10


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