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Menu Foods Reaches Settlement Agreement

Menu Foods

Here is a press release dated April 1 on Menu Foods website:

Menu Foods Income Fund (TSX: MEW.UN) announced that the parties to the Pet Food Multi-District Litigation (including Menu Foods) today advised the United States District Court for the District of New Jersey that their mediation has produced a comprehensive, cross-border agreement in principle between the parties, addressing all major terms of settlement.

The settlement in principle is subject to several conditions, including the approval of certain other parties, the execution of a definitive settlement agreement and review and approval of the U.S. District Court and the Canadian courts. The parties advised the court that they are confident that a definitive settlement agreement can be reached.

The definitive terms of settlement, together with a motion for preliminary approval thereof, are scheduled to be filed with the U.S. District Court on May 1, 2008, with the hearing scheduled to occur at 11:00 a.m. on May 14, 2008. The scheduling for Canadian court approval has not yet been determined, but is expected to occur in a similar time frame.

The settlement amount will be funded by the defendants, including Menu Foods and its product liability insurer. Menu Foodsâ€™ estimate for recall costs remains unchanged at Cdn.$55 million. Pet owners with potential claims should not contact Menu Foods regarding the agreement in principle. If and when a definitive settlement agreement and claims process have been finalized and approved, the administrator of the settlement fund will give notice to pet owners with details on the procedure for making claims on the settlement fund.

(Thanks Carol)

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