Kentucky environmental attorney Sanders says bankruptcy judge orders Peanut Corp of America to set up $12 million fund for victims of salmonella poisoning.

As part of the bankruptcy proceedings for Peanut Corporation of America, which processed and distributed millions of pounds of contaminated peanuts, peanut butter and peanut paste that sickened people throughout the United States with salmonella poisoning, a federal judge has issued an order calling for the creation of a $12 million fund from insurance proceeds to compensate victims.

William E. Anderson, the bankruptcy judge overseeing the dissolution of the Peanut Corporation of America (PCA), issued the order in October requiring Hartford Insurance to create a fund that will be used to pay claims by people who contracted food poisoning and other health complications from tainted peanuts sold by PCA.

Hartford was the insurance company for PCA, which declared bankruptcy in February 2009 in the aftermath of a massive nationwide recall that impacted hundreds of products made from ingredients processed at a plant in Georgia, including crackers, cookies, cereal, candy and ice cream with peanut butter.

No word yet on whether the upper management of PCA is going to jail for criminal charges arising from this truly outrageous conduct.