Odwalla Settles 5 More Contamination Suits

Odwalla Inc. settled five more suits brought by families whose children were sickened by an E. coli bacteria outbreak that was traced to the company’s unpasteurized apple juice. Odwalla, the country’s largest fresh juice producer, still faces a federal grand jury investigation as well as three private suits concerning the outbreak, which forced the company to recall its apple juice in October 1996. Terms of the agreement weren’t disclosed. If the presiding judge approves the settlement, the company will have settled 17 of the 20 suits stemming from the outbreak, a company spokesman said. Half Moon Bay-based Odwalla began pasteurizing its fresh-squeezed apple juice after the death of a 16-month-old Colorado girl and illnesses in 60 other people. Odwalla shares fell 44 cents to close at $9.25 on Nasdaq.