Settlement Proceeds Donated to Red Cross
In 1991, hundreds of retail stores sued three companies for conspiring to drive up the price of infant formula. Pursuant to a 1993 settlement agreement, $91 million was paid to consumers who were victimized by the conspircy. Another $940,000 was set aside to pay late claims. As of 2000, after payment of expenses, $700,000 remained in the settlement fund.
Judge Maurice Paul in Tallahassee ruled at that time that the remaining money should be distributed "for a purpose similar to that represented by those who sued." His reasoning may be stretched, but his heart was in the right place when he ruled on Sept. 8 that the money should be donated to the Red Cross to benefit Hurricane Katrina survivors.
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