It's Peanuts! - Peanut Corp. of America files for Bankruptcy

The Peanut Corporation of America is at the center of the Salmonella food poisoning outbreak that has killed 9 people.

They went for the big one, chapter 7 bankruptcy.

So why is this on an Economics blog?

Because chapter 7 will not allow all of those harmed to sue in civil action against this company. This is a complete liquidation of all assets. Everything is sold off and proceeds go to existing creditors.

Now China has a tendency to kill executives who allow people to be poisoned. There are criminal proceedings against this company but typically corporate crime in the United States gets a slap on the wrist.

Where was the FDA in all of this? (in all of those, in this poisoning, in that one, in the next one).

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Justice for those who died

Chapter 7 is utter bull and a scam to hide assets.

The executive who urged shipping tainted product because he didn't want to lose any money should be prosecuted as aiding and abetting deliberate harm. That move by those in charge was reckless defiance of the health consequences, depracved indifference.

There needs to be capital charges, 2nd degree murder AT THE LEAST.

Making an example of such a scumbag is the least the FDA/DOJ can do.

We will find out he was "connected", had no reason to fear the FDA or any other regulator. Like Madoff, like the subprime lenders , like the banks repackaging loans and taking all their profits up front before the notes had a chance to show their true value...all "legal" and encouraged.

America is being turned into a massive brothel where it doesn't matter how you get rich, and whom you screw to get rich, and how much suffering and ruin is left behind as you get rich, just as long as you do get rich.

China is copying this successful example, except when their own citizens get poisoned then they have to toast somebody to show they are concerned.

Fat chance the powers that be would allow a single, spoiled legacy like Bush or his retainers or underlings or connected people to suffer one jot for the misery they caused.

Shooting them isn't good enough.

I wasn't that big of a fan of the death penalty. Frankly, to me that's just a quick way, I'm too old school for that. Frankly, charge them all for murder, from the executives on down to the floor manager who knew. The only exceptions should be anyone who tried to warn or do something. But yeah, what we got is at the very least manslaughter. People able to hide or get away with this shit for years has money socked away secretly for family (just in case). I say take everything from these people, and I do mean everything.

Take over the company, clean it up, do what you have to remove the poisons and germs or what have you. Remove management that hasn't been arrested (same with the board), and put in place a new caretaker regime. Cancel the Chap 7, any assets already sold, the sales should be canceled. The business itself was profitable. Have the victim's families be the majority shareholders and creditors, at the very least, make the shareholders a trust that produces income for those families.

As for the execs and owners, like I say, strip them of all their assets, included protected ones like insurance policies. All the money goes into that trust I mentioned. Life imprisonment for these bastards at a max or high threat prison (no Club Fed for them!). Hard labor, construction work or even working on the factory floor of their former company. Whatever the job, let it be at least menial. Their only meals, should be peanut products, made from that factory.

Their days should consist of hard work.
Their meals a reminder of their former product
Their nights...well you know how things can go in those prisons.
Let the know what misery is. Let them know that they destroyed their own families when their recklessness destroyed others' families.

maybe that was a little strong

But I was trying to point out when it comes to any white collar crime, especially under the guise of "executive of a corporation" or corporate crime, nothing happens. It's unreal.

$50 billion dollar rip off, poisoning people, some of the drugs released by companies and the best one can hope for is 15 years later a check for $29.95 from a class action that is later overturned on appeal?

I never liked class action lawsuits

The lawyers that put them together get like 20%, while everyone else gets those shitty cheques you mentioned. I say limit class action lawsuits in a way where the lawyers don't get the lions share. Honestly, we should have a government consumer ombudsman or something that initiates these lawsuits on behalf of the consumer. Someone who's sole job is class action lawsuits against crooked companies.

even worse

individuals get no justice. The way the entire system is set up it's an industry and a money game instead of righting a wrong. But often in things like discrimination it's only a class action that has a prayer's chance, else the corporate attorneys attack the individual, I think it's the "nuts and sluts" attack method to try to reduce the credibility of the plaintiff. then they just play the money game and wait/drag it out.