Sunland Inc, a bankrupt peanut-processing plant, was at the heart of a salmonella outbreak and nationwide recall of jars of peanut butter in 2012.
The $2.6 million worth of peanut butter now in question was made for Costco Wholesale stores last year before the plant's closure last fall, WREX-TV, Albuquerque reported.
Costco refused to take the peanut butter even though tests proved the product was safe. Costco also refused requests that the peanut butter be donated to food banks or sold to institutions like prisons.
Court records indicate Costco turned the product away due to leaky peanut oil.