Corteva agrees to $85 million settlement in U.S. farmer lawsuit over pesticide pricing

Corteva has agreed to pay $85 million to settle a U.S. class-action lawsuit alleging the company used distributor loyalty programs to suppress competition from generic crop protection products and keep pesticide prices artificially high.

The proposed settlement, filed in federal court in North Carolina, covers more than 100,000 farmers who purchased certain Corteva crop protection products containing specified active ingredients since October 2018. The lawsuit alleged that Corteva and Syngenta implemented loyalty and rebate programs with distributors that discouraged the sale of competing generic products, reducing competition and increasing costs for farmers.

Corteva denied any wrongdoing as part of the settlement and said it was pleased to resolve the litigation while remaining focused on serving customers. The agreement still requires court approval. According to attorneys representing the farmers, the settlement amount represents about 10% of the total damages estimated by the plaintiffs’ economic expert.

The case originated in 2022 following antitrust allegations brought by the Federal Trade Commission and several U.S. states. Plaintiffs said continuing litigation against Corteva would have required significant additional resources and increased the complexity of the case, particularly as it approached trial.

The lawsuit against Syngenta will continue, with the company denying the allegations. The company had not publicly commented on the proposed settlement at the time of reporting. Attorneys representing the farmers said they also plan to seek legal fees from the settlement fund.

Source: Reuters