Deal to settle part of Canadian E. coli beef recall lawsuit

Lawyers have brokered a tentative deal to settle part of a class-action lawsuit filed over an E. coli outbreak and the largest meat recall in Canadian history.

XL.foodsThe lawsuit is against XL Foods Inc., which operated a meat-packing plant in southern Alberta during the tainted beef recall in 2012.

Rick Mallett, a lawyer for the Edmonton law firm behind the class action, said the settlement is to cover refunds to consumers for products that were recalled.

He said the proposed $1-million settlement, plus other costs, is to go before a judge early next year for approval.

“The parties have reached a settlement on beef refund claims subject to approval of the court,” Mallett said Tuesday following a hearing in Court of Queen’s Bench.

“It applies to anyone who purchased recalled beef — XL beef — and disposed of it and didn’t get a refund.”

XL Foods recalled more than 1.8 million kilograms of beef in Canada and the United States.

In its statement of defence the company has denied liability and the allegations contained in the class action. The plant in Brooks was sold to JBS Canada last year.