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 The listeriosis outbreak, the infection caused by the bacteria,
killed more than 200 people in South Africa last year and was traced
back to a factory run by Tiger Brands-owned Enterprise Foods.
Tiger Brands confirmed to the stock exchange that it had received a
summons with respect to the class action lawsuit, which has been in
the offing for some time.
"The company intends to defend the class action," the statement
said, adding it would follow due legal process and issue further
updates when appropriate.
The company's shares were down 0.9 percent at 0811 GMT.
The amount of damages being claimed was not identified in the
summons, it continued, because the first stage of the class action
is concerned with liability and not damages, which will be dealt
with at a subsequent stage once there has been a ruling on
liability.
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It said that the plaintiffs are seeking damages under the terms of
the Consumer Protection Act and for exemplary, punitive or
constitutional damages, which Tiger Brands said it has been advised
are not recognized in South African law.
While the company has product liability insurance cover, this does
not include cover for exemplary or punitive damages, which are
damages intended to punish the defendant for its conduct and deter
it and others from similar behavior in future.
Listeriosis causes flu-like symptoms, nausea, diarrhea and infection
of the blood and brain. It poses a higher risk for newborns, the
elderly, pregnant women and people with weak immunity.
(Reporting by Emma Rumney; Editing by Louise Heavens)
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