Syngenta settles farmer’s contamination suit ahead of trial

Bloomberg

Syngenta AG reached a confidential settlement with a Nebraska farmer who claimed the company mishandled marketing of its genetically modified seed, causing US corn prices to plummet. With the settlement, Syngenta averts a trial that was scheduled to start July 10. Terms weren’t disclosed.
Two weeks ago, Syngenta lost a $218 million jury verdict for a class of Kansas farmers who brought similar claims against the Swiss agrochemical company, which has been acquired by China National Chemical Corp. The Basel-based company completed its $43 billion takeover by ChemChina in June. Syngenta faces its next class action in a Minnesota court in August, where farmers are seeking more than $600 million.

SETTLEMENT REACHED
The company reached the settlement with farmer Daniel Mensik last week, as a scheduled trial neared in state court in Minnesota, plaintiffs’ attorney Mikal Watts said by phone. The settlement was confirmed by the court.
The farmers claim Syngenta rushed its GMO seed to market before getting approval from China to export the grain there. In 2013, China stopped shipments after calling the corn contaminated by the GMO seed, setting off a five-year depression in prices, the farmers claim. They also allege Syngenta misled them on when the Chinese would approve the seed.
The settlement may not have implications for the rest of the cases, said Anthony Sabino, a law professor at St. John’s University in New York. “Call it a tactical retreat,” he said. “Most likely, Syngenta felt the case of a single farmer versus the big corporation was too risky to take to trial, and the dollars paid were within an acceptable range.”

CASE FACTS
Syngenta has disputed the damages claimed by farmers, or that it did anything wrong. The company didn’t sell the seed until approved by the US and didn’t need Chinese approval, Syngenta lawyers have argued.
“The resolution allows the company to focus on another upcoming trial scheduled to begin in August, and does not represent a change in strategy for the company,’’ Paul Minehart, Syngenta spokesman, said in an email. “Syngenta will continue to defend the litigation and the rights of farmers to have access to safe and effective US seed technologies.’’