Pillsbury filed suit against its insurance carriers.
In the suit, Pillsbury claims that it should be reimbursed for $50 million of the $70 million it says it lost because of a panic over grain products containing the cancer-causing pesticide EDB, a story in the Minneapolis Star & Tribune said. The firm took out $150 million in insurance to protect itself from losses suffered from public panic over its products, the suit, filed in Hennepin County District Court in Minneapolis, reportedly said. A year later, the company suffered a loss of about $70 million when the government first issued tolerance levels of EDB and set off a panic, according to the lawsuit. The group of five insurance carriers has not paid the claim, saying that Pillsbury exaggerated its losses, the story said.