Class-action lawsuits against Maple Leaf Foods, related to a listeriosis outbreak in processed meat that was linked to the death of 20 Canadians, have been settled out of court for a cost estimated at between $25 million and $27 million.
The top executive at Maple Leaf Foods on Thursday called the settlement "fair and reasonable."
"This was a tragic experience and I want to acknowledge the co-operation of all the parties involved to ensure that people affected receive timely restitution," said Michael McCain, president of Maple Leaf Foods.
"Our goal throughout this legal process has been to negotiate a fair and early settlement so that we can obtain court approvals and promptly compensate families who were affected," said Mr. McCain, who previously apologized to the public and said the company would take full responsibility.
Retired Calgary resident Brian Witwicki, who said he was "sick for weeks" with listeriosis praised Mr. McCain for a quick resolution, adding that had the litigation been dragged out it would have been very stressful for the families affected.
"The leadership and effort taken by Mr. McCain from the onset of this unfortunate event are truly commendable," he said Thursday.
Lawyers for the case also said Maple Leaf Foods had acted responsibly and lived up to its promise to help the victims and their families.
"We are very pleased all of the actions across Canada have been resolved quickly, efficiently, and in the best interest of the class," said Colin Stevenson of Stevensons LLP, one of a team of lawyers for the plaintiffs said Thursday. Eight other Canadian law firms are involved in the suit.
In the wake of the tainted-meat affair, the suits were launched in August in Ontario, Quebec, British Columbia, Alberta and Saskatchewan. However, subject to court approval, all cases will be handled in just three provinces -- Saskatchewan, Quebec and Ontario, said Ted Charney, of Falconer Charney LLP, another of the lawyers involved in the suit.
There are currently about 5,000 plaintiffs, but lawyers said that number could grow if others who fit into the class definition come forward. The amount of compensation each would receive varies.
The class definition covers Canadians who suffered physical injuries such as illness or the death of a family member, but also includes those who experienced emotional distress.
The amount of money that each class member would receive depends on the severity of their illness.
"For example in the case of someone who died, for the estate itself there will be $120,000, plus $30,000 for the spouse of the deceased and $30,000 for the children of the deceased and $20,000 for the parents," Mr. Stevenson explained.
At the other end of the scale would be someone who consumed the meat and became ill for a day or two, he said.
"So someone like that would get up to $780."
A full grid outlining the particulars of the settlement will be posted online at www.mapleleaffoodsclassaction.com.
Lawyers expect to get court approval by February, which means the plaintiffs could see a cheque by sometime next summer, said Stevenson.
The national class action suit originally claimed $100-million for all consumers who purchased or consumed products on the Maple Leaf Foods recall list.
But while the final amount is just one-quarter of the original claim, Mr. Charney said the clients were "delighted with the result."
Tim Clark, whose elderly mother, Frances Clark was one of the Canadians who died from listeria has described his mother's death as "awful."
Frances Clark, 89, was the first person to be publicly identified as a victim of the listeriosis outbreak. She died Aug. 25 in hospital in Madoc, Ont.
Mr. Clark said his mother was rushed to hospital after having developed a sudden high fever, extreme weakness, aches and pains and laboured breathing. As the day progressed, she became unable to speak. Within days she became unconscious and died.
The Maple Leaf Foods' Toronto meat-processing plant was shut for a month when it was determined that its deli meats had been contaminated with Listeria monocytogenes.
The company, which employs about 23,500 people, recalled more than 200 brands of ready-to-eat deli meats and sandwiches.
In 2007, Maple Leaf had sales of $5.2-billion. However, in its first earnings report since the outbreak, the company announced last October a $12.9-million loss in the third quarter, compared to a profit of $200.4-million for same quarter a year before.
The class action settlement will be fully funded by the company's liability insurers, Maple Leaf said.
Listeria monocytogenes is a bacterium that exists in the environment and can contaminate meats, fish and vegetables. It can lead to the development of listeriosis, associated with flu-like symptoms that can include nausea, vomiting, cramps, diarrhea, high fever, severe headache, neck stiffness, constipation, persistent fever and death.
Symptoms usually appear within two to 30 days, but it can take up to 90 days to get sick after someone has eaten contaminated food. The elderly, pregnant women, children and those with weak immune systems are most at risk.
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Wednesday, January 21, 2009
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