A Tale of Three Outbreaks: ConAgra plea deal reached

A couple of weeks ago I left my cozy bubble of Raleigh and travelled to Wayne County NC for an evening talk at the Farm-City Banquet. As I was driving I thought about Doug and Gord Surgeoner’s mentorship – both instilled the importance of engaging with real people around issues and chatting over dinners.

Research and extension activities need grounding in reality.caddyshack_be_the_ball_small

The morning of the event I wasn’t entirely sure what to talk about – so I asked Schaffner for input during a podcast recording. He suggested ‘A Tale of Two Outbreaks’ – comparing Jensen Farms to PCA. Both tragic outbreaks, both resulting in criminal charges. One was due to an egregious disregard for public health. The other seemed to be a couple of folks who meant well but didn’t quite get microbiology.

Be the bug.

For the next talk I’m gonna add in ConAgra’s Peter Pan/Salmonella outbreak as part of the story.

The Associated Press reports that ConAgra pled guilty and has agreed to pay $11.2 million in fines and other fees as a result of an outbreak a decade ago.

ConAgra admitted to a single misdemeanor count of shipping adulterated food. No individuals at the leading food conglomerate faced any charges in the 2006 outbreak, which sickened at least 625 people in 47 states.

Disease detectives traced the salmonella to a plant in rural Sylvester, Georgia, that produced peanut butter for ConAgra under the Peter Pan label and the Great Value brand sold at Wal-Mart. In 2007 the company recalled all the peanut butter it had sold since 2004.

Leo Knowles, president of ConAgra Grocery Products, offered no testimony as he entered the misdemeanor plea Tuesday on behalf of the Chicago-based corporation’s subsidiary.

“It made a lot of people sick,” federal prosecutor Graham Thorpe said Tuesday as he described ConAgra’s decision to continue shipments from the Georgia plant in late 2006, before corrective actions were completed, despite lab tests that had twice detected salmonella in samples.

“The industry has taken notice of this prosecution,” Thorpe added.

Though the Justice Department called $8 million the heftiest criminal fine ever imposed in a U.S. food safety case, it represents just one-tenth of one percent of ConAgra’s current $8 billion market capitalization. The company also will pay $3.2 million in cash forfeitures to the federal government.

ConAgra said it didn’t know peanut butter was contaminated with salmonella before it was shipped. However, the plea agreement documents noted that ConAgra knew peanut butter made in Georgia had twice tested positive for salmonella in 2004. Problems weren’t all fixed by the time of the outbreak.

The judge noted that others had already received cash from ConAgra in civil settlements, which he said totaled $36 million to 6,810 people.

About 2,000 of them were represented by Bill Marler, a Seattle-based attorney who specializes in food-safety cases. He said the case shows corporations can be prosecuted even when there’s no evidence of intentional criminality. The misdemeanor charge, he said, required only that ConAgra shipped the contaminated food.

“Companies are very concerned, they’re very worried,” Marler said. “They’re very interested in knowing: How can they charge us with a crime even if we don’t mean to do it? People are paying attention to that and hopefully it’s going to drive positive food behavior.”

The folks in the food and agriculture world in Wayne County seemed to pay attention.

$11.2M settlement: ConAgra finalizes deal in tainted peanut butter case

Russ Bynum of Federal News Radio reports that in November 2006, the U.S. Centers for Disease Control and state health officials began investigating an outbreak of salmonella infections ultimately blamed for sickening at least 625 people in 47 states and killing nine.

peanut-butter-peter-panInvestigators traced the salmonella to jars of Peter Pan and Great Value brand peanut butter produced in Sylvester, Georgia.

ConAgra officials blamed moisture from a leaky roof and a malfunctioning sprinkler system at the Georgia plant for helping salmonella bacteria grow on raw peanuts.

ConAgra launched a huge recall in February 2007, destroying and urging consumers to throw out all of its peanut butter produced since 2004.

Peter Pan peanut butter vanished from store shelves for months. Meanwhile, ConAgra spent $275 million on upgrades at the Georgia plant and adopted new testing procedures to screen peanut butter for contaminants.

Six months later, in August 2007, ConAgra announced it was ready for Peter Pan to return to supermarkets.

Today, ConAgra faces a court hearing to finalize an $11.2 million settlement — including the largest criminal fine ever in a U.S. food safety case — to resolve federal charges in a salmonella outbreak that sickened hundreds who ate tainted Peter Pan peanut butter.

A federal criminal investigation followed the outbreak. More than eight years after the Peter Pan recall, in May 2015, the Justice Department announced charges and a pre-arranged plea deal with ConAgra.

The agreement called for ConAgra Grocery Products Company, a ConAgra subsidiary, to plead guilty to a single misdemeanor charge of shipping adulterated food. No charges were brought against executives of ConAgra, which was based in Omaha, Nebraska, at the time but has since moved its headquarters to Chicago.

ConAgra issued a statement saying the company didn’t know its peanut butter was contaminated with salmonella before it was shipped. However, the plea agreement documents note that ConAgra knew peanut butter made in Georgia had twice tested positive for salmonella in 2004. Prosecutors said the company destroyed the tainted peanut butter and identified likely sources of contamination, but ConAgra had not finished fixing those problems by the time of the 2007 outbreak.

An outbreak can be the horrible gift that keeps on giving

For victims, reminders of an outbreak may be daily and can include long term sequelae from foodborne pathogens like Salmonella.

Folks on the industry talk crisis, recall, restoration and recovery. The events aren’t usually managed quickly. It can take years.jellyofthemonth

According to AP, almost a decade ago ConAgra’s Peter Pan peanut butter was linked to over 600 illnesses; and the fallout continues.

After years of investigation and legal negotiations, federal prosecutors announced last year that Chicago-based ConAgra had agreed to pay $11.2 million — a sum that includes the highest fine ever in a U.S. food safety case — and plead guilty to a single misdemeanor charge of shipping adulterated food. Investigators linked peanut butter produced in Sylvester, Georgia, to 626 people sickened by salmonella before a February 2007 recall removed Peter Pan from store shelves for months.

The charge and accompanying plea deal were revealed May 20, 2015. More than 14 months later, a federal judge has yet to hold a formal plea hearing or approve the settlement.

That could soon change. U.S. District Judge W. Louis Sands has ordered a teleconference with ConAgra attorneys and prosecutors on Thursday to schedule a plea date. Prosecutors told the judge in a legal filing July 29 both sides are ready to proceed after a year spent reaching out to possible victims so they could file claims for financial restitution.

“These criminal cases resonate across the world in food safety and I’m certainly an advocate of continuing to do this,” said Bill Marler, a Seattle-based attorney who specializes in food safety and represented 2,000 clients in civil suits against ConAgra after the Peter Pan outbreak. “But I think a little more prompt justice is called for. Something that goes on for a decade doesn’t necessarily make the most sense.”

Will it be salmonella-free? ConAgra Foods launches new line of peanut butter spreads

By March 2007, salmonella in Peter Pan peanut butter had sickened 628 people in 47 states and caused the company to shut down its Sylvester, Georgia, manufacturing facility; the contamination was likely due to a leaky roof and faulty sprinklers.

Last week, ConAgra Foods announced the launch of a new line of natural peanut butter spreads from its Peter Pan brand.

The three no-stir varieties are made with 100% natural ingredients and contain no high fructose corn syrup, hydrogenated oils, trans fat or preservatives.

Hopefully, or scientifically, they won’t contain any salmonella.