Syngenta Settles US Atrazine Litigation

Posted by |29 May 2012

St. Louis, Missouri, US, — Syngenta and attorneys for several community water systems have agreed to settle litigation related to the herbicide atrazine in order to end the business uncertainty and expense of protracted legal proceedings, according to a Syngenta press release. The proposed settlement agreement which requires court approval was filed with the United States District Court for the Southern District of Illinois on May 24, 2012.

Under the terms of the agreement, Syngenta expressly denied liability, and the plaintiffs acknowledged that they are not aware of any new scientific studies relating to atrazine. The total cost of the settlement for Syngenta is $105 million, which will be charged to the income statement in 2012. The charge is partly covered by provisions and the impact on earnings will be approximately $0.5 per share.

Syngenta will continue to market atrazine as part of its comprehensive corn herbicide portfolio enabling US growers to achieve optimal weed control.

Municipalities have until Aug. 23 to test their water and file for inclusion in the class action, the members of which will split the $105 million after paying court-approved attorney fees, costs and expenses. A community’s share of the fund will depend on the concentration, frequency and how long ago atrazine was detected in your water; the size of the population you serve; and the number of valid claims submitted.

According to Syngenta: The Court will hold a hearing in this case, Greenville v. Syngenta Crop Protection, No. 10-cv-188 on Oct. 22, to consider approving the settlement; approving requests for attorneys’ fees not to exceed one-third of the settlement fund, and reimbursement of costs and expenses. If the settlement is approved, it will release Syngenta and others from all claims that were asserted or could have been asserted in the litigation for the next ten years.