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Judge orders $12M fund for peanut salmonella claims

  • Story Highlights
  • Peanut company's insurer ordered to set aside $12 million for claims
  • Authorities: Nine deaths linked to salmonella-tainted peanut products
  • People's claims must be submitted by end of this month
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(CNN) -- A U.S. bankruptcy judge Thursday ordered Peanut Corporation of America's insurance carrier to set aside $12 million to reimburse people for health complications that resulted from eating tainted peanut products.

Peanut Corporation of America declared bankruptcy in February.

Peanut Corporation of America declared bankruptcy in February.

U.S. Bankruptcy Judge William E. Anderson agreed to create the fund.

Claims must be submitted to a claims administrator by October 31, said Trustee Roy V. Creasy of the U.S. Bankruptcy Court for the Western District of Virginia, Lynchburg Division.

PCA's salmonella-tainted peanut butter and peanut paste were linked to hundreds of illnesses and at least nine deaths, starting last year, federal authorities said.

PCA's products were used in the manufacturing of other companies' food products nationwide, including cakes, candies, crackers, cookies and ice cream. Hundreds of the products were recalled.

After the recalls, PCA declared bankruptcy in February.

A call to the company's bankruptcy lawyer, Steven A. Goldstein, was not immediately returned.

Federal authorities have initiated a criminal probe into the company.

CNN's Craig Bell contributed to this story.

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