Ashley Milano  |  June 30, 2015

Category: Consumer News

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Syngenta faces even more legal problems associated with its genetically modified corn Viptera as non-producers have filed a class action lawsuit alleging that Syngenta’s actions regarding China Viptera approval also caused them financial damages.

Non-producer plaintiffs Trans Coastal Supply Company, Winnsboro Elevator, and Rail Transfer Inc. have joined class action litigation against the GMO giant claiming they were also financially harmed as a result of cross contaminated Viptera corn containing the MIR162 trait. The Syngenta class action lawsuit alleges that U.S. farmers were not the only ones affected by Syngenta’s rush to market Viptera corn.

Non-producers allegedly injured by Syngenta’s conduct include grain elevators, which purchase, store, and sell corn; haulers and transfer companies that transfer and load corn and corn by-products, and exporters of corn and corn by-products.

These named plaintiffs all collectively allege in the Syngenta class action lawsuitthey suffered financially by the collapse of the corn exports market to China and suffered damages from reduced corn prices from costs associated with lost contracts and rejected shipments of corn.

These non-producer plaintiffs are seeking compensation and punitive damages as a class for the losses they have suffered as a result of Syngenta’s irresponsible conduct regarding Viptera corn.

Syngenta Viptera Corn Problem

Syngenta allegedly marketed a specific genetically modified corn seed, known as MIR162 or Viptera, despite knowing that China and many other international trading partners would refuse to purchase the genetically modified corn.

The Viptera seed was approved by the United States in 2010; however, in 2013, China refused to accept American corn with the MIR162 trait, rejecting imports and causing a sharp decline in the commodity market. Allegedly, Syngenta’s action caused the price of corn to drop from $7 a bushel in 2013 to $3.50 a bushel in 2014.

Even farmers who did not grow Syngenta seeds and non-producers related to the corn industry are impacted by China’s refusal to purchase the U.S. corn crop. Attorneys representing farmers say China’s rejection of the U.S. corn shipment created a surplus of crop and reduced corn prices for the crop years 2013-14.

GMO corn lawsuits against Syngenta allege Syngenta encouraged farmers to plant the MIR162 seeds side-by-side with other corn varieties after it gained approval in the United States, knowing it would be rejected by China and despite the contamination risks of commingling.

According to Syngenta lawsuits, Syngenta encouraged this side-by-side planting process despite the known contamination risks in doing so and claim Syngenta knew that commingling different varieties of corn was a risk during the planting, harvesting, drying, storage and transportation process. Once released, a corn variety will, without adequate precautions, contaminate the broader corn supply.

By promoting this side-by-side program, Syngenta helped spread the amount of MIR162 that would appear in the U.S. corn supply, thus putting exports to countries that had not approved the trait, such as China, at risk.

The Syngenta Class Action Lawsuit is In re: Syngenta AG MIR162 Corn Litigation, MDL No. 2591, in the U.S. District Court for the District of Kansas.

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