Menu Foods Settles in Pet Food Recall

April 5, 2008

TORONTO – Menu Foods, the company responsible for the deaths of an estimated 4,000 dogs and cats, has settled in principle, Reuters reported earlier this week.

The Canada-based company said a “comprehensive cross-border agreement in principle” has been reached following mediation with parties specific to the case.

Although there are some specific conditions required for the settlement, Menu representatives are confident a “definitive agreement” can be reachedwith those whose animals were afflicted.

In 2007, Menu recalled around 60 million packages of pet food falling under a number of its labels. They include Iams, Eukanuba and President’s Choice. Brands sold to Wal-Mart and other major pet and grocery stores were also recalled.

While the details of the settlement are yet to be announced, the Toronto Stock Exchange reported a gain of about 14 cents for the company’s stock following the announcement. That’s an 18 percent increase, bringing share value up to about 83 cents. Before the recall, Menu Foods stock was valued at $7 per share.

The recall began when contaminated wheat gluten made its way into 60 million packages of food. The gluten originated from China.

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Matt Van Hoven, Pet Pulse, and Reuters contributed to this story.