A group of 16 Iowa farmers and companies in the corn industry are suing Syngenta AG, claiming they suffered huge financial losses after the agricultural giant sold them genetically engineered corn seed that was not approved for use by China — the third largest importer of U.S. corn in the world.

The Iowa plaintiffs join more than 100 other farmers, commodity traders, and others in the U.S. corn industry that are seeking monetary and punitive damages from Syngenta, a Switzerland-based company with operations in Iowa.

The Syngenta corn class action lawsuits claim the company negligently sold the genetically engineered corn seed — known as Viptera or MIR162 — before it was approved by countries considered major markets for U.S. corn exports. The MIR162 corn seed strand was created to protect crops against damage from certain insects.

“Syngenta has caused damages to U.S. farmers, grain handlers and exporters,” the Syngenta corn seed lawsuits allege. “Syngenta’s conduct in marketing, distributing and selling unapproved corn seed violates the legal standards of the marketplace because the primary market risk falls on U.S. farmers, grain handlers and exporters, not on Syngenta.”

Before Viptera MIR162 corn seed was sold to U.S. farmers in 2011, China was a major importer of U.S. corn at 2.5 million tons per year.

In late 2013, Chinese authorities began turning away U.S. corn shipments found to contain Viptera corn as part of its tougher stance on imports of GMO corn. In 2014, China corn imports from the U.S. were down to 375,000 tons — an 85% decline.

It is alleged in a growing number of class action lawsuits against Syngenta that this dramatic drop in corn exports to China will cost U.S. farmers, corn storage companies, corn exporters and brokers, and others in the U.S. corn market between $1 billion and $3 billion in financial losses.

Many of those affected are taking action against Syngenta and seeking compensation for their losses.

History of Genetically Engineered Food

Despite an overwhelming scientific consensus for their safety, genetically engineered foods face a degree of opposition in the arenas of public opinion and the law.

Genetic engineering is a process that takes genes from one organism and puts them into another. Since the language of DNA is universal, the genetically modified organisms or GMO will express that gene as if was the GMO’s own DNA.

The first GMOs approved were GMO yeast cells that could produce human insulin, saving the lives of millions of type-1 diabetes who needed insulin to survive, but had developed allergies to animal-based insulin.

In the case of Syngenta’s GMO corn, the Swedish agricultural company developed a type of genetically engineered corn seed called Agrisure Viptera. Also known as MIR162, the genetically engineered corn is more resistant against damage from insects, allowing farmers to use less pesticide to produce corn. Viptera was approved by for use in the U.S., Brazil and Argentina in 2011.

However, a problem has stemmed from international law. Some countries have banned GMO corn and other GMO crops over perceived safety concerns. However, some people who are pro-GMO believe that bans on genetically engineered corn and other GMO crops may stem more from attempts to undermine another company’s economy.

For example, the Russian Federation’s ban on GMOs has been alleged to be a way for Russia to ban U.S. food imports without instituting an official ban, since the U.S. produces more genetically modified corn and other GMO crops than any other country.

The Syngenta class action lawsuits allege that Syngenta marketed their genetically modified corn in the United States prematurely, before it was approved for use by other countries.

While the genetically engineered corn was cleared and approved by the FDA for use in the United States, plaintiffs in the Syngenta class action lawsuits have alleged that the company failed to consider that one of the 7^th largest importers of U.S. grain, China, had not approved this particular type of genetically engineered corn for use in their country. Allegedly, China’s rejection of Viptera MIR162 has cost U.S. corn producers more than a billion dollars in economic damages. Some estimates are up to $3 billion.

The various plaintiffs in the Syngenta corn class action lawsuits have different goals. Some seek to recoup economic losses due to China’s rejection of this type of genetically engineered corn. However, others are looking to draw attention to irregularities in the process of approving genetically engineered corn and other GMO crops throughout the world, in hopes of achieving more clarity on the process.

The Syngenta GMO corn class action lawsuits may force biotech companies to disclose to growers that their seeds are not approved in some countries—for whatever reason—including China. This case could create a precedent that seed companies must disclose what countries their crops are and are not approved in.