Fund OKd for claims against Va peanut company

Associated Press - October 1, 2009 5:44 PM ET

LYNCHBURG, Va. (AP) - A $12 million fund is being created for individual claims against Peanut Corp. of America, the processor at the center of a nationwide salmonella outbreak this year.

U.S. Bankruptcy Judge William E. Anderson agreed Thursday to sign off on the fund, which is intended to settle about 175 claims by people left ill by peanuts traced to the company's Blakely, Ga., plant.

Bankruptcy trustee Roy Creasy said the money provided by Peanut Corp.'s insurers will be distributed based on the extent of victims' illnesses.

The outbreak sickened about 700 people and has been linked to at least nine deaths.

Some victims could still file lawsuits against food manufacturers that used the Lynchburg company's peanut butter and peanut paste.

Information from: The News & Advance, http://www.newsadvance.com/