Parties involved in settlement talks for class-action litigation stemming from last year’s melamine-spurred pet food recalls have reached a comprehensive, cross-border agreement.

Parties involved in settlement talks for class-action litigation stemming from last year’s melamine-spurred pet food recalls have reached a comprehensive, cross-border agreement, Menu Foods Income Fund, parent of Menu Foods, reports.

The settlement is subject to various conditions, including the approval of certain other parties, the execution of a definitive settlement agreement, and U.S. and Canadian court approval.

Furthermore, Menu expects the definitive terms of the settlement and a motion for preliminary approval will be filed in U.S. District Court in New Jersey on May 1, with a hearing scheduled for May 14.  The Canadian court is expected to consider the matter at about the same time, Menu reported.

Menu and its insurer would fund the settlement, and Menu estimates its direct recall costs (which don’t include lost sales) will remain at about $55 million Canadian (about $54 million U.S. at early April exchange rates).

If approved, a settlement administrator will notify pet owners on how to make claims on the settlement fund. <HOME>

Posted April 2, 2008, 2:33 p.m., EST