Saturday, February 14, 2009
Peanut Corp. of America Files for Bankruptcy
By Ian Froeb
on Sat, Feb 14, 2009 at 9:47 AM
Peanut Corp. of America has filed for bankruptcy
Peanut Corp. of America is the source of the current salmonella outbreak in peanut-butter products. Earlier this week, the state of Texas ordered a recall of everything ever shipped from the company's plant there, while the company's head took the fifth while appearing before a Congressional hearing.
One upshot of the bankruptcy filing? According to a consumer advocate, as quoted in the CNN article:
"PCA's declaration of bankruptcy will, among other things, shield it from liability suits filed by consumers who became sick or whose loved ones died as a result of eating PCA's peanut products."
In a move that surprises exactly no one,