$12M Settlement Recommended By Judge In Peanut Butter Salmonella Case

Last year, more than 120 personal injury claims were filed in an outbreak of salmonella poisoning stemming from peanut butter served at a long-term care facility in Minnesota. 45 children became ill and 9 persons died. The cases have been winding their way through the legal system.

The supplier, Peanut Corp., ended up filing for bankruptcy in the aftermath of the disease outbreak. The company’s insurer, Hartford Casualty, however, will be providing money to the victims. The question was: how much?

Last Wednesday, Judge Michael Urbanski came up with a recommendation: in total, an amount of $12 million should be awarded. If the amount is approved by a bankruptcy judge, then the settlement can go forward.