By Paul Tassin  |  April 30, 2015

Category: Consumer News

GMO Corn Maize Cob on wooden backgroundThe big federal multidistrict litigation over Syngenta Viptera corn just got even bigger.

The U.S. Judicial Panel on Multidistrict Litigation began transferring a large number of new lawsuits into the multidistrict litigation, or MDL, now pending in federal court in Kansas. The panel transferred about 300 such corn lawsuitsright away. By the time all the transfers are complete, the MDL will have increased in size from 500 claims to over 1,900.

The transfer happened following resolution of a disagreement over whether some of the claims should be processed in federal court or state court. Plaintiffs Cargill Inc. and Archer Daniels Midland Co., along with two commercial corn farmers, wanted their claims remanded to state court instead of being transferred into the federal MDL. Syngenta argued the claims belonged in federal court since they implicated actions by the government of China. The plaintiffs ultimately withdrew their opposition to the transfer.

Syngenta’s Viptera Corn

Syngenta developed Viptera corn
, also known as MIR 162, to contain a protein that kills some common corn-eating pests. The USDA approved Viptera for U.S. sale in 2010, and approval in Brazil and Argentina led to exports to those countries as well. Syngenta had applied for the Chinese government’s approval in March 2010, but Chinese officials had not yet approved Viptera for import in November 2013, when they discovered traces of Viptera in a shipment of U.S. corn. The Chinese government not only rejected the tainted corn shipment but also banned imports of U.S. corn from November 2013 to December 2014.

Simultaneous with the Chinese ban, the price of U.S. corn dropped. Plaintiffs in the MDL blame Syngenta for the price drop, saying the price drop resulted from the drop in demand caused by the sudden loss of the Chinese market. Plaintiffs attribute anywhere from $1 billion to $3 billion in losses to Syngenta’s actions.

By the dozens, members of the corn industry have been filing Syngenta lawsuits. The plaintiffs range from individual farmers to giant agricultural corporations. Cargill Inc., the largest closely held company in the United States, sued in September 2014. Archer Daniels Midland, the largest corn processor in the world, joined the fray in November.

Plaintiffs’ attorneys accuse Syngenta of shifting the risk involved in the introduction of a new product onto the backs of small farmers. Syngenta’s position is that these claims are without merit. They argue that fault lies not with them but with the Chinese government. They also argue that the drop in the price of corn is traceable to many other factors, such as bumper crops that happened around the time of the Chinese ban. Indeed, the price of U.S. corn dropped from $6.79 to $4.63 a bushel between July and October 2013, the months just before the Chinese ban began.

The Syngenta lawsuits in federal court are being consolidated into an MDL now pending in the U.S. District Court for the District of Kansas.

The Syngenta GMO Corn MDL is titled In re: Syngenta AG MIR 162 Corn Litigation, Case No. 2:14-md-02591. Other Syngenta lawsuits filed in state courts may eventually find their way into the federal MDL.

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