News article about beef product recall

Nebraska Beef settles lawsuit with Colorado company over 2008 beef recall; terms still not disclosed.

OMAHA, Neb. — Nebraska Beef Ltd. has reached a settlement with a Colorado company over liability for a 2008 beef recall, according to an order filed late Friday in the federal case.

The Omaha-based processor sued Loveland, Colo.-based Meyer Natural Foods LLC in January 2009, raising the question of which company should be held liable for the tainted meat. A trial had been set for next month.

Nebraska Beef recalled nearly 7 million pounds of beef in two separate recalls after its products were linked to at least 76 cases of E. coli illnesses. At least some of the recalled meat came from cattle that Meyer bought and sent to Nebraska Beef's plant for processing from May through July 2008.

The judge's order filed Friday in U.S. District Court in Omaha said attorneys for both companies notified the court the dispute was settled. Terms have not been disclosed, and the judge ordered both sides to file a motion to dismiss the case by April 25.

Messages left Saturday for attorneys in the case were not immediately returned.

Nebraska Beef's lawsuit said legal claims related to the recalled beef had made against Meyer, which wanted Nebraska Beef to indemnify it against any liability for the tainted meat. But Nebraska Beef denies the contamination originated at its processing plant and says it did not breach the terms of its contract with Meyer. So, Nebraska Beef wanted the court to declare that it's not obligated to indemnify Meyer.

Most of the meat Nebraska Beef recalled in 2008 was shipped to companies that planned to further process the meat. That makes it difficult to determine exactly where the meat became contaminated with E. coli bacteria.

At least four lawsuits were filed against Nebraska Beef after the recalls, including three in Georgia and one in Ohio.

-Timberly Ross Associated Press

Amirah