Today U.S. Bankruptcy Judge William E. Anderson ordered Peanut Corporation of America’s insurance carrier Hartford to set aside $12 million to reimburse people for health complications that resulted from eating tainted peanut products. Peanut Corporation of America declared bankruptcy in February.
Claims must be submitted to a claims administrator by October 31, said Trustee Roy V. Creasy of the U.S. Bankruptcy Court for the Western District of Virginia, Lynchburg Division. PCA’s salmonella-tainted peanut butter and peanut paste were linked to 714 illnesses and at least nine deaths, starting last year, federal authorities said. PCA’s products were used in the manufacturing of other companies’ food products nationwide, including cakes, candies, crackers, cookies and ice cream. Thousands of the products were recalled.