Poison Pet Food Settlement
Menu Foods announced a settlement with US and Canadian courts in lawsuits concerning toxic pet food. The company, maker of Iams, Eukanuba, and President's Choice pet food brands, was sued by pet owners after producing food with toxic ingredients from China. The discovery of the poison ingredients resulted in the recall of tens of millions of containers of wet dog and cat food.
The poison food affected pet owners across the country in 2007. Owners were forced to throw out the tainted food and in some cases seek medical attention for their pets. The company blamed a supplier in China for the poisoned ingredients, which included wheat gluten and rice protein.
The deal was given preliminary approval by the US District Court for the District of New Jersey. The settlement calls for Menu Foods and its insurer to create a fund of $24 million to pay for up to 100 percent of damages incurred by pet owners. The fund will also allow customers who purchased the pet food to seek reimbursement from the company. Management at Menu Foods welcome the deal, stating the agreement will allow the company to move forward and focus on rebuilding the business.