Former Hostess Co. Settles Bad Bread Suit With Utah Bakery

Law360, New York (October 17, 2013, 2:02 PM EDT) -- The company formerly known as Hostess Brands Inc. asked a New York bankruptcy judge Wednesday to approve a settlement with the Utah bakery accused of selling 43,000 loaves of “defective” bread to a Hostess subsidiary that the company later had to recall.

Old HB Inc. and its affiliates said Salt Lake City-based Papa Pita Bakery had agreed to pay $145,000 to settle the August suit, which was filed in the bankruptcy court where Hostess’ operations are currently winding down. Hostess claimed it was owed almost $231,000...
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