Secrecy, Costs, Criminals, and Claimants: 2010 GMA Conference

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Third parties are increasingly suing food businesses for foodborne illness caused by their products. Settlements are often kept secret by defendants to avoid embarrassment over payment amounts or discouraging other claims. Food businesses can limit their liability by elevating food safety, inviting regulators for inspections, and being industry leaders in safety. They should also have recall, PR, litigation, and settlement plans in place along with experts and spokespeople to respond when claims arise. Paying legitimate medical and wage loss claims while aggressively fighting other claims is a strategy for playing defense offensively.

“Secrecy, Costs, Criminals and Claimants”

PCA – Poisoning People and Criminal Acts

Pot Pies and Hamburgers -and Consumer Responsibility ,[object Object]

Is it wise to sue the customer?,[object Object]

Settlement Secrecy – is it Bad for the Industry? ,[object Object]

To discourage other claims?,[object Object]

Preventing It The First Place – Elevate Food Safety ,[object Object]

It limits the chance of it happening and avoids the likelihood of a denial of coverage and punitive damages ,[object Object]

CEI’s Values Based Communications Project Our Challenge: Make Good Policy Good Politics Our Question: Just because we’re right, do we have to lose? CEI’s communication work suggests the answer should be a resounding NO! Capitalism creates a massive middle class Produces entrepreneurs and intellectuals Intellectuals criticize (envy) and de-legitimize entrepreneurs Culture grows skeptical of business, support for government intervention grows. Wealth creation suffers, individuals suffer.

Information Failures in Markets

tutor2u

Scandals can be found anywhere and magnified profoundly on social media. It can range from political candidates to consumer products, and from salacious personal conduct by corporate CEOs to environmental calamities. While King Solomon wrote “there is nothing new under the sun,” today’s limitless channels of communication exponentially might challenge that statement since messages now travel at the speed of the Internet and not on handwritten scrolls. Message that impact both the reputation of the those involved in the crisis and also can create additional legal liabilities for law firms and their clients. And since a crisis can have significant legal implications, lawyers are often involved throughout the process. Most importantly, how well a crisis is managed depends both on handling the public narrative as well as legal implications.

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Acute hemolytic uremic syndrome (HUS). Post-diarrheal hemolytic uremic syndrome (D+HUS) is a severe, life-threatening complication that occurs in about 10 percent of those infected with E. coli O157:H7 or other Shiga toxin-producing (Stx) E. coli (STEC). The cascade of events leading to HUS begins with ingestion of Stx-producing E. coli (e.g., E. coli O157: H7) in contaminated food, beverages, animal to person, or person-to-person transmission. The bacteria rapidly multiply in the gut, causing inflammation and diarrhea (colitis) as they tightly bind to cells that line the large intestine. This snug attachment becomes a route for the toxin to travel from the gut into the bloodstream, where it attaches to weak receptors on white blood cells (WBCs). From there, WBCs carry the toxin to the kidneys and other organs. To induce toxicity in target cells, Shiga toxins must first bind to specific receptors on their surface (Gb3 receptors). Organ injury is primarily a function of Gb3 receptor location and density. They are found on epithelial, endothelial, mesangial, and glomerular cells of the kidney, as well as microvascular endothelial cells of the brain and intestine. Because this attachment causes these organs to be susceptible to the toxicity of Shiga toxins, this distribution explains the involvement of the gut, kidney, and brain in STEC-associated hemolytic uremic syndrome (HUS). Within the target organ, Shiga toxins disrupt the cellular machinery, resulting in cell injury and/or death. Within the intestine, infectious bacterial lesions cause derangements in the intestinal lining, disrupting the structure of the villi, affecting absorption in the gut, and eventually leading to watery diarrhea. Damage to the intestinal endothelium also causes mucosal/submucosal edema and, hemorrhage, introducing blood into the diarrhea. Within the circulatory system, Shiga toxins are directly involved in platelet activation and aggregation (clot formation). The thrombotic microangiopathy that characterizes hemolytic uremic syndrome (HUS) occurs when platelet microthrombi (tiny clots) form in the walls of small blood vessels (arterioles and capillaries) causing platelet consumption. This pathologic reduction in platelets is called thrombocytopenia and is one of the hallmarks of HUS. Within the microvasculature of the kidney these clots disturb blood flow to the organ, causing acute kidney injury and kidney failure.

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