June 27, 2001


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Sara Lee A Tiny Bit Less Rich

In a landmark case against Sara Lee and the filthy conditions at their Bil Mar meat processing plant, federal prosecutors won a $4.4 million settlement from the Chicago-based corporation. Sara Lee was convicted of selling processed meat tainted with listeria, resulting in at least 15 deaths and six miscarriages in the U.S. in 1998. Food safety advocates have applauded the verdict, but consider the settlement to be a tiny slap on the wrist.

Bil Mar recalled 15 million pounds of hot dogs and processed meats after the plant was linked to the outbreak, which also caused serious illness in 80 people. Sara Lee will pay the maximum fine of $200,000 and spend $3 million on food-safety research. Additionally, Sara Lee will pay $1.2 million to settle a lawsuit over tainted meat sold to the Pentagon.

Sara Lee has settled at least two lawsuits that were filed by people who were sickened by the tainted meat and family members of those who died. Settlement figures were not publicly released.

Listeria is a type of bacteria that is especially dangerous to children, the elderly, and those with a compromised immune system. Last year, Sara Lee also settled class-action lawsuits on behalf of thousands of people who claim to have gotten sick. Payments reached as high as $50,000 per plaintiff, plus medical expenses.