ConAgra Seeks Insurance Coverage for 2007 Peanut Butter Salmonella Outbreak

ConAgra Foods, Inc. has reportedly filed a lawsuit against its umbrella insurer, seeking coverage for the claims that were filed by people who alleged injury from a Salmonella outbreak in 2007 linked to the company’s Sylvester, Georgia, peanut butter processing facility. ConAgra Foods, Inc. v. Lexington Ins. Co., No. 09C-02-170 (Del. Super Ct., New Castle Cty., filed February 19, 2009). The complaint alleges that Lexington Insurance Co. has failed to pay for any of the 2,400 claims settled or resolved to date. ConAgra reportedly anticipates an additional 20,000 cases from the outbreak. According to a news source, the company is seeking a declaratory judgment, compensatory and punitive damages, interest, and attorney’s fees. See Product Liability Law 360, February 24, 2009.