The president of bankrupt Peanut Corp. of America and three former managers are each seeking a piece of a $1 million corporate insurance policy for legal costs stemming from a salmonella outbreak.
The nationwide outbreak sickened about 700 people and has been linked to at least nine deaths. It was traced to the company’s plants in Georgia and Texas.
According to federal court filings, Peanut Corp. President Stewart Parnell is seeking the largest amount, $951,000 from Fidelity Insurance. Three former managers at the Georgia plant also are seeking funds for legal costs.
Two former board members asked for unspecified funds.
A settlement recently approved by U.S. District Court Judge Norman Moon gave $125,000 to the company’s estate for claims made in bankruptcy court.
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