San Diego - The operator and franchiser of the Jack in the Box fast-food chain says it has received $58.5 million from nine companies to settle all outstanding legal claims stemming from a deadly 1993 E. Coli bacteria outbreak.
The outbreak, caused by tainted hamburger patties, killed two children and left more than 400 people ill in the Pacific Northwest.
San Diego-based Foodmaker said today it expects to realize a net amount of slightly more than $30 million from the settlement after taxes and litigation costs.
The parties that agreed to settle with Foodmaker were Beef Packers Inc., Cattleman's Choice, Fresno Meat Co., Monfort Inc., Orleans International Inc., RBR Meat Co., Service Packing Co., The Vons Cos. Inc. and Westland Inc., which supplied and distributed the meat.
The fast-food chain has already settled personal injury claims arising from the outbreak, but officials refused to say how much they had to pay.
Jack in the Box has been trying to recover from the negative publicity stemming from the food poisoning. It has resurrected the "Jack" clown symbol that was discontinued in 1980 and has been using a light-hearted approach in its ad campaigns.
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