Insurer Pays $11M To Settle Row Over Salmonella Recall

Law360, New York (March 22, 2012, 5:13 PM EDT) -- Employers Fire Insurance Co. will pay $11 million as part of a larger settlement filed Thursday that resolves its coverage dispute with Basic Food Flavors Inc. and $34 million in claims against the flavor enhancer stemming from the recall of a salmonella-tainted product.

In a motion seeking settlement approval filed in Nevada federal court, Employers and Basic Food said a neutral administrator had overseen a claims evaluation process and had approved $34,387,496 in claims against Basic Food over its March 2010 recall of hydrolyzed vegetable protein,...
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