Menu Foods Inc., a Mississauga, Ontario manufacturer of pet foods, has received court approval for a US$24-million (Cdn$30-million) settlement over recalled tainted pet food. In March 2007, Menu Foods recalled approximately 60 million cans and pouches of its "cuts and gravy" style food, sold under 95 different brand names, after it received reports of kidney failure and death in cats and dogs.
More than 1,600 Canadians and roughly 23,000 Americans believe their pets were sickened or killed by the pet food, which was tainted with melamine. More than 100 class action lawsuits were filed in Canada and the U.S.
Pet owners will receive 100 per cent of any "economic damages" they incurred related to the recalled products, provided they have suitable documentation. Those without documentation may receive compensation up to US$900.
Economic damages include costs of purchasing the food or expenses relating to the pet's illness and/or death, including testing, veterinarian bills and burial costs. The settlement does not cover "non-economic losses" such as emotional distress.
The settlement is in addition to US$8 million already paid out to pet owners by some of the pet-food brands involved.
Menu Foods expects their total expenses related to the recall to hit $55 million. To date, their share price has lost approximately 90 per cent of its value since March 15 of last year, the day before the recall.
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