WATERLOO - A federal lawsuit brought by two area residents who became ill after eating at Taco John's restaurants in November 2006 have been settled out of court.

Karen Hibben-Levi of Waterloo and the parents of Autumn Saul filed a suit in U.S. District Court in Cedar Rapids against the franchise holders after they contracted E. Coli poisoning.

Hibben-Levi, 66, had eaten at the location on Broadway Street in Waterloo, while Saul, 10, ate at the Cedar Falls restaurant on University Avenue.

They were two of about 80 people who reported illness after eating at Taco John's restaurants in Iowa and Minnesota in late November and early December.

Lettuce tainted with a strain of the E. coli bacteria was blamed on the outbreak.

The terms of the legal settlements were confidential, and the cases were formally dismissed in October.

Both Hibben-Levi and Saul were hospitalized for days after they became ill.

Public health officials said food at Taco John's restaurants in Austin and Albert Lea, Minn., and Cedar Falls and Waterloo, Iowa, were tainted.

According to the FDA, 81 people became ill with E. coli infections after eating at Taco John's, including 33 from Minnesota, 47 from Iowa, and one from Wisconsin.

Twenty-six people were hospitalized with E. coli infections, and two developed hemolytic uremic syndrome, a serious complication that can cause permanent kidney damage.

In Black Hawk County, health officials found 33 people ill with E. coli infections after eating at the Cedar Falls restaurant. Fourteen were hospitalized.

The strain of E. coli was traced to produce growers in California.

Contact Jeff Reinitz at (319) 291-1578 or jeff.reinitz@wcfcourier.com.