Fudge manufacturer Calico Cottage sues Smucker over peanut butter recall losses


Attorney William J. Brennan of Kennedys CMK LLP | Kennedys CMK LLP

Fudge manufacturer Calico Cottage Inc. has filed a lawsuit against J.M. Smucker Co., alleging negligence and strict liability following a recall of contaminated peanut butter that resulted in financial losses for the company.

Calico Cottage, a family-owned business based in Amityville, New York, is a major supplier of fudge-making equipment and ingredients. According to the complaint, the company learned on May 20, 2022, of a salmonella contamination from a Smucker’s recall notice. In response, the company conducted an internal investigation and determined that some of its fudge products were affected by the contaminated peanut butter lot codes. On May 24, 2022, Calico issued a voluntary recall of those products. The U.S. Food and Drug Administration (FDA) classified the peanut butter recall as Class I, its most serious designation, due to potential health risks.

The lawsuit claims that the contamination forced Calico Cottage to quarantine and recall finished products, resulting in substantial financial losses. The complaint further alleges that Smucker has not compensated the company for these damages.

In addition to negligence, the lawsuit alleges strict liability, asserting that Smucker distributed adulterated peanut butter that posed health risks to both consumers and business partners. An FDA investigation into Smucker’s manufacturing facility reportedly uncovered violations of food safety regulations, which the complaint cites in support of Calico’s claims.

Calico Cottage is seeking damages of at least $746,582, along with attorney fees and related costs. The claimed losses include reduced gross profits, customer deductions, inventory loss, storage fees, and other expenses resulting from the contamination.

The plaintiff is represented by attorney William J. Brennan of Kennedys CMK LLP. The case was filed in the United States District Court for the Eastern District of New York.

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