China dairies to compensate victims (CNN)

BEIJING, China (CNN) -- Victims of tainted baby formula, which caused hundreds of thousands of infants to become sick, six of whom died, are expected to be compensated by 22 Chinese dairy producers that made the milk.

"The enterprises offered to shoulder the compensation liability," the country's Dairy Industry Association said Saturday, according to state news agency Xinhua. "By doing so, they hope to earn understanding and forgiveness of the families of the sickened children."

The group said victims will receive a one-time cash payment, but did not provide the amounts, according to Xinhua. "The money for compensation is in place now and will soon be handed to the people who have custody of the sickened children through various channels," the association said.

No date for the payments was given. The 22 dairies also raised money to cover medical bills for any after-effects suffered as a result of the poisoning, the association said.

Six children died from what the Ministry of Health said was likely melamine contamination. About 294,000 infants also suffered from urinary problems such as kidney stones.
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more: http://www.cnn.com/2008/BUSINESS/12/27/china.milk.compensation/index.html

The company involved has filed for bankruptcy: http://www.cnn.com/2008/BUSINESS/12/25/sanlu.bankruptcy/index.html

There are hundreds of babies still hospitalized from illness brought about by melamine-adulterated products.