Former Peanut Company Head Indicted on Conspiracy Charges

The company conducted a multi-year conspiracy to hide salmonella contamination in products.

The former owner of Peanut Corp. of America was indicted yesterday in connection to the 2008/2009 peanut-butter salmonella outbreak that led to nine deaths, in addition to hundreds of illnesses.

Stewart Parnell, with other employees, allegedly participated in a conspiracy to hide salmonella contamination for years. The company failed to recall the products or inform customers after tests showed that some products were tainted with the harmful bacteria. The company even falsified lab reports to pass contaminated products as salmonella-free.

Parnell and other employees face 76 charges, including wire fraud, shipment fraud, conspiracy, and obstruction of justice.

The company filed for Chapter 7 bankruptcy in 2009, following the salmonella outbreak. 

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