Salmonella victims to split $12 million from peanut company’s insurer

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Nearly 120 victims of a salmonella outbreak traced to one of the plants of a Lynchburg, Va.-based peanut company will split $12 million as part of a settlement with insurer The Hartford.

The attorney representing the victims said they could start seeing settlement portions over the next several months, according to the Atlanta Journal-Constitution.

Last year, Peanut Corporation of America (PCA) filed for bankruptcy protection, following a salmonella outbreak the U.S. Food and Drug Administration traced to one of its facilities in Blakely, Ga. The Centers for Disease Control determined that 714 people became sick in 46 states and Canada as a result of the outbreak. Infections from the outbreak may have contributed to nine deaths.

The settlement money comes from an insurance policy PCA had with The Hartford and to be eligible, victims or their survivors had to file a claim by Oct. 31, 2009, as part of the company’s bankruptcy proceedings, according to the report. An additional $750,000 from the settlement will be used to pay administrative costs and attorneys’ fees.

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