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SoyNut Butter Co. Files for Bankruptcy Amid E. Coli Outbreak

SoyNut Butter Co. has filed for bankruptcy after an E. Coli outbreak linked to its soy nut butter products sickened people in a dozen states.

Glenview, Illinois-based SoyNut Butter Co. has filed for bankruptcy after an E. Coli outbreak linked to its soy nut butter products sickened at least 32 people in a dozen states.

Free Confidential Lawsuit Evaluation: If you or a loved one developed symptoms of food poisoning after eating soynut butter, you should contact our law firm immediately. You may be entitled to compensation by filing a suit against the SoyNut Butter Co. and our lawyers can help.

What’s the Problem?

May 17, 2017 – Stephen Grubb, President and majority shareholder of SoyNut Butter Co., listed some victims of the E. coli outbreak as creditors with “unknown” amounts owed to them in a Chapter 7 filing in U.S. Bankruptcy court in Illinois, according to the Chicago Tribune.

The Centers for Disease Control and Prevention (CDC) received reports of at least 32 people — 26 of whom were children — in 12 states that were diagnosed with the outbreak strain of E. coli O157:H7, which was found in I.M. Healthy SoyNut Butter and the company’s manufacturing facility.

On March 4, SoyNut Butter Co. issued a nationwide recall for some of its I.M. Healthy Original Creamy SoyNut Butter after the U.S. Food & Drug Administration (FDA) alerted it to the presence of E. coli in the product.

Three days later, the recall was expanded to include I.M. Healthy Granola. It was later revealed that the FDA had informed it of a positive E. coli test of its products made by a contract manufacturer, Dixie Dew Products.

The bankruptcy filing effectively puts lawsuits filed by E. coli victims on hold for the time being. Insurance coverage held by SoyNut Butter Co. and Dixie Dew Products will total about $12 million and can only be used to compensate outbreak victims, not other creditors, assuming the manufacturer also declares bankruptcy.

If both SoyNut Butter Co. and Dixie Dew Products go bankrupt, retailers who sold E. coli tainted products could also be liable to victims. Those include Target, Amazon and other major retailers.

Do I Have a Soynut Butter Recall Lawsuit?

The Food Poisoning Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in soy nut butter lawsuits. We are handling individual litigation nationwide and currently accepting new E. coli infection cases in all 50 states.

Free Case Evaluation: Again, if you got sick after eating soy nut butter, you should contact our law firm immediately. You may be entitled to a settlement by filing a suit and we can help.

Free Confidential Case Evaluation

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