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Food Companies Feud Over $19.8M Jalapeño Powder Recall

July 17, 2018, 4:22 PM

A Chinese supplier of salmonella-tainted jalapeño powder should foot Frito-Lay’s $19.8 million bill for recalling two of its popular potato chip products last year, a federal lawsuit claims.

The complaint, filed July 13 in the U.S. District Court for the Northern District of Illinois, provides a window into commercial litigation that follows food recalls—and the risks posed by imported ingredients used in U.S. foods.

The complaint by Henry Broch & Co., a food importer based in Gurnee, Ill., alleges that Shanghai Pecenp International Co. agreed to meet Food and Drug Administration food safety standards for the jalapeño powder, but didn’t ...