Key Takeaways
- Bayer's Monsanto unit to pay at least $133 million to two states.
- Michigan to receive $108 million, Rhode Island to get $25 million.
- Settlements address contamination from toxic PCBs produced until 1977.
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Bayer's Monsanto to pay $133 million for PCB contamination claims
Bayer's Monsanto unit will pay at least $133 million to settle claims from Michigan and Rhode Island over toxic PCB chemical contamination.
"This settlement directly supports our efforts to hold corporations accountable for the pollution caused by their products," Michigan Attorney General Dana Nessel said in a statement.
The agreement allocates a minimum of $108 million to Michigan and $25 million to Rhode Island. Payments could increase based on the outcome of separate litigation filed by Bayer against companies that purchased polychlorinated biphenyls, or PCBs, from Monsanto.
The settlement is the latest in a series of costly legal battles for Bayer following its $63 billion acquisition of Monsanto in 2018, adding to liabilities from Roundup weedkiller lawsuits.
Monsanto, which produced PCBs from 1935 until 1977, said the settlements will address legacy liabilities with no admission of wrongdoing. The chemicals were used to insulate electrical equipment and in products like paint and caulking before being outlawed by the U.S. government in 1979 after being linked to cancer.
With these agreements, Bayer has now settled with 12 states over PCB contamination claims. The company noted that potential future litigation is limited as the chemicals have been declining in the environment for 45 years.
The resolution with 12 states mitigates some of Bayer's legal exposure from legacy PCB production. Investors will watch the pending indemnity litigation, which could increase the final payout by up to $226 million.
This article is for informational purposes only and does not constitute investment advice.
