DeCoster Rehearing Denied—Food and Beverage Company Executives Face Risks of Prosecution as Responsible Corporate Officers

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A recent Eighth Circuit decision that two corporate officers must serve jail time for failing to prevent the distribution of contaminated eggs despite the fact that they did not know the eggs were infected reaffirms continuing risks faced by food and beverage executives, though the case suggests arguments that could be raised to future prosecutions. In DeCoster, the Eighth Circuit recently denied the petitions of Quality Egg LLC's owner, Jack DeCoster, and CEO, Peter DeCoster, for rehearing en banc. Both had pled guilty under the "responsible corporate officer" doctrine for introducing adulterated eggs into interstate commerce under the Federal Food, Drug and Cosmetic Act of 1938 (FDCA). The district court sentenced each executive to three months in prison, one year of supervised release and a $100,000 fine. The Eighth Circuit affirmed the sentences and the DeCosters sought rehearing from the entire Eighth Circuit panel.

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