Judge OKs $12M settlement on bad peanuts

LYNCHBURG, Va. — A federal judge has approved a $12 million settlement for those sickened or killed in last year's salmonella outbreak tied to a Virginia-based peanut processor.

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U.S. District Judge Norman Moon issued his ruling Wednesday to pay more than 120 personal injury claims related to the outbreak.

The outbreak was traced to Lynchburg-based Peanut Corp. of America's plants in Georgia and Texas and linked to at least nine deaths and 700 illnesses.

Peanut Corp. filed for Chapter 7 bankruptcy to dissolve amid fallout from the outbreak.

The money provided by the company's insurer, Hartford Casualty Insurance Co., will be distributed based on the extent of victims' illnesses. Additional settlement funds are being paid by Kellogg Co.