A Bayer AG (BAYN) unit agreed to a $750 million settlement resolving claims with about 11,000 U.S. farmers who said a strain of the company’s genetically modified rice tainted crops and ruined their export value.
The settlement, announced yesterday, ends scores of lawsuits filed against the Bayer CropScience unit of the Leverkusen, Germany-based company by farmers in Texas, Louisiana, Missouri, Arkansas and Mississippi.
The U.S. Agriculture Department said in August 2006 that trace amounts of the company’s experimental LibertyLink strain were found in U.S. long-grain rice. Within four days, declining rice futures cost U.S. growers about $150 million, according to a complaint filed by the farmers. News of the contamination caused futures prices to fall about 14 percent.
“From the outset of this litigation, we made it clear to Bayer that the company needed to step up and take responsibility for damaging American rice farmers with its unapproved rice seeds,” Adam Levitt, a plaintiffs’ lawyer, said yesterday in a statement. “This excellent settlement goes a long way toward achieving that goal.”
Bayer confirmed the settlement in its own press statement minutes later.
“Although Bayer CropScience believes it acted responsibly in the handling of its biotech rice, the company considers it important to resolve the litigation so that it can move forward focused on its fundamental mission of providing innovative solutions to modern agriculture,” Greg Coffey, a spokesman for the company, said in the statement.
h/t to Mike Goldman in Facebook.