Xinhua is reporting that some families whose children were killed by contaminated milk have accepted monetary compensation from Sanlu dairy company in exchange for an agreement to give up a lawsuit against the company:
Yi Yongsheng and Jiao Hongfang, villagers in Gangu County of northwestern Gansu Province, confirmed with Xinhua on Friday that they received 200,000 yuan (29,247 U.S. dollars) from the company Wednesday.
Yi declined to give further details on the compensation. He said he was busy and then hung up the phone.
Their five-month-old son died on May 1, 2008 after suffering from kidney failure caused by the contaminated milk. He was believed to be the first child who died after drinking formula containing the industrial chemical, melamine.
By accepting the money from Sanlu, Yi and Jiao gave up their rights to sue the company.
The report says that 3,000 families have accepted the compensation package. Read also an International Herald Tribune report. Other families have rejected offers of compensation in an effort to push for increased research into the health effects of melamine.