$12 million fund established for Peanut Corp. salmonella victims

By: By Ray Reed Lynhcburg News & Advance | WSLS
Published: October 01, 2009

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A U.S. Bankruptcy judge said today he will sign an order establishing a $12 million fund to pay claims from people sickened by salmonella poisoning connected to Lynchburg-based Peanut Corporation of America.

The action by judge William E. Anderson sets the framework for settling about 175 claims for illnesses traced to PCA's plant in Blakely, Ga.

The fund will be administered by Roy Creasy, bankruptcy trustee for Western Virginia. The money will be provided by two Hartford Insurance divisions.

Creasy said the money will be distributed among the victims based on the extent of their illnesses.

Attorneys for a majority of the victims have generally agreed to the settlement, which is a major step in wrapping up claims against PCA from a nationwide salmonella outbreak in November and December that resulted in 714 people getting sick, according to the Centers for Disease Control and Prevention.

Some victims could still file lawsuits against food manufacturers that used PCA's peanut butter and peanut paste in products such as sandwich crackers, ice cream, candy and cookies.

$12 million fund established for Peanut Corp. salmonella victims

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