Blog: ConAgra fined for... lead in paint?
Katy Askew | 17 December 2013
ConAgra Foods has been ordered to contribute to a damages payment totalling US$1.1bn to replace lead paint in millions of homes in California.
The link between ConAgra, which is best known for grocery brands including Healthy Choice and Chef Boyardee, and the use of lead paint in construction might seem tenuous at first. Certainly ConAgra believes so.
"ConAgra Foods vehemently disagrees with the decision," the company vented in a statement to the press. "ConAgra Foods is absolutely not an appropriate defendant and was never in the paint business. As a food maker who employs thousands of people in California, we believe this case is an unfortunate example of extreme overreach."
However, Superior Court Judge James Kleinberg would beg to differ.
According to his assessment, ConAgra assumed the liabilities of paint manufacturer W.P. Fuller & Co. when it acquired Beatrice Company and its former subsidiaries in 1991. As such, the company was ordered to pay damages along side two other defendants - Sherwin-Williams Co. and NL Industries Inc.
In a statement to the stock exchange filed before the California ruling, ConAgra revealed it has faced various litigation and environmental proceedings related to businesses "divested by Beatrice prior to its acquisition by us", including W.P. Fuller. In similar proceedings, the company saw favourable decisions in Rhode Island, New Jersey, Wisconsin and Ohio.
ConAgra said it would appeal the California ruling.
Companies: ConAgra Foods
A new report by the Soil Association has highlighted a lack of healthy lunch options at the cafes of some of the UK's most prestigious visitor attractions....
UK family-run baking firm Country Style Foods has bought the former Jus-Rol production facility in the English town of Berwick-upon-Tweed from General Mills....
The BBC turned to just-food today for insight on the price dispute between Tesco and Unilever....
Just weeks after buying UK turkey processor Bernard Matthews from administration, food tycoon Ranjit Boparan has struck a similar deal....
- Nestle India grows with global, digital innovation
- How Nestle tackles Indian challenges - interview
- Lamb Weston goes it alone: six things to learn
- Analysis: Tyson's shrewd investment in Beyond Meat
- Thailand: convenience to continue to thrive
- Mars launches Maltesers in the US
- Bel takes majority stake in MOM Group
- Campbell backs US nutrition start-up Habit
- Mondelez focuses on margins as sales slip
- Nestle's Buitoni to remove GMOs
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Packaged Food: Quarterly Statement Q3 2016
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Meat Processing in China - Industry Market Research Report