Saturday, February 14, 2009

Peanut follies

Salty Peanut
Originally uploaded by EuroMagic.

This just isn't right. CNN reports that Peanut Corp. of America, the company whose tainted peanuts have caused more than 600 cases of salmonella (nine of them fatal), has filed Chapter 7 bankruptcy. Not a reorganization. They're shutting down.

While I don't have a problem with them no longer producing peanut products, it's ghastly that "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," CNN quoted Jean Halloran, director of food policy initiatives at Consumers Union (they publish Consumer Reports).



  1. You shouldn't be able to use the law to aovid the law. This sucks.

  2. My thoughts exactly Gal. In fact, I think criminal charges may over ride the bankruptcy action.

  3. Unfortunately, that's the purpose of a corporation. To shield the individuals from financial responsibility. There may be criminal charges, but it will be difficult to pierce the corporate veil to get payment for hospital bills, etc. That will have to go through civil court, where the bankruptcy protects them.