Peanut Corp. of America Files for Bankruptcy; Plaintiffs’ Lawyer Seeks to Lift Stay
The Peanut Corp. of America, whose Salmonella-tainted peanut butter and peanut paste products led to one of the largest food recalls in the United States, has reportedly filed for Chapter 7 bankruptcy protection in Virginia. The day it did so, Texas health officials apparently announced a recall of all products manufactured at the company’s peanut-processing facility in that state after discovering dead rodents,
droppings and bird feathers in unsealed gaps above a food production area. A Virginia plant operated by the company has also been closed. A state agriculture spokesperson reportedly said that inspectors found minor problems at the facility in 2007 and 2008, including flaking paint and evidence of rodents.
Food lawyer William Marler, who has sued the company on behalf of several families allegedly affected by the Salmonella outbreak, claimed that he has hired a law firm that helped him “manage both the Chi-Chi and Topps Bankruptcies,” and would file a motion to lift the stay of bankruptcy to protect his clients’ interests. More than 1,900 food products made by 85 companies have now apparently been recalled due to
the Salmonella outbreak, which has purportedly sickened more than 600 people in 44 states and allegedly caused nine deaths. See Marler Blog, Foodnavigator-usa.com, February 16, 2009; MSNBC.com, February 17, 2009.
