Judge OKs $12M Peanut Corp. of America Settlement

Thursday Update:

The Associated Press says it misinterpreted a motion filed by the federal judge Wednesday. That motion was only for one plaintiff, who was disputing his settlement of zero dollars.

However on Thursday, the US District Judge Norman Moon did approve the $12 million settlement. He also tossed out the disputed claim.

The money is coming from the insurance company for the Lynchburg-based Peanut Corporation of America.


LYNCHBURG, Va. (AP) - A federal judge has approved a $12 million settlement for those sickened or killed in last year's salmonella outbreak tied to a Virginia-based peanut processor.

U.S. District Judge Norman Moon issued his ruling Wednesday to pay 123 personal injury claims related to the outbreak. It outlines how much money each the victims will receive. The payments to the victims vary quite a bit, with the highest being $2.4 million.

The outbreak was traced to Lynchburg-based Peanut Corp. of America's plants in Georgia and Texas and linked to at least nine deaths and 700 illnesses.

Peanut Corp. filed for Chapter 7 bankruptcy to dissolve amid fallout from the outbreak.

The money provided by the company's insurer, Hartford Casualty Insurance Co., will be distributed based on the extent of victims' illnesses. Additional settlement funds are being paid by Kellogg Co.

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