Syngenta Expected to Reimburse Losses of Around $2.9 Billion

Viptera, also known as MIR162, was created by Syngenta as a corn seed that prevented corn pests from attacking the crop. It was widely sold for the 2011 crop year. It was during this time that industry participants began to worry about the lack of China Viptera approval. Syngenta, however, expanded sales for the next crop years to allegedly benefit from their monopoly on the MIR162 corn trait.

In 2013, China rejected Viptera entirely, meaning that any corn exports containing even a trace of MIR162 were sent back. This resulted in a wide rejection of U.S. corn, as Syngenta corn had contaminated most of the crops. It was estimated that between $1 billion and $2.9 billion were lost due to Syngenta’s actions.
The class action lawsuit states, “Syngenta actively misled farmers, industry participants and others about the importance of the Chinese market . . . the timing of when China was likely to approve MIR162 . . . and its ability to contain the infiltration of [Viptera] into the U.S. corn supply.”
The class action lawsuit also points out that a new GMO corn seed was released for the 2014 crop year that has also not received China approval.

Syngenta Lawsuits

Many Syngenta lawsuits and class action lawsuits have been filed against the company, claiming the defendant misled those involved in the corn industry so they could better profit on their monopoly of MIR162.
The plaintiffs in this class action lawsuit include Kenneth Borah, a Texas resident who planted, harvested, and sold Syngenta corn. Plaintiff Scott Lemke, Otis Shinn, William Keller White, Linda Cain Wilson, and the Wright Family LP are also named plaintiffs in this Syngenta lawsuit. All were involved in the corn industry and allegedly suffered from significant financial losses because of Syngenta’s Viptera corn.
Counts in this class action lawsuit include violation of the Lanham Act, negligence, tortious interference with existing and/or prospective business relationships, trespass to chattels, private nuisance, violations of state deceptive and unfair trade practices acts and consumer protection statutes, among other claims.
It is expected that this class action lawsuit will be consolidated into the Syngenta multidistrict litigation in Kansas, where a large number of claims concerning MIR162 have already been consolidated.

Syngenta To Be Penalized Again?

The Judicial Panel on Multidistrict Litigation has agreed to consolidate in Kansas multiple class actions and lawsuits filed by corn farmers, grain exporters and others who accuse Syngenta Corp. of “tainting” the U.S. corn supply with genetically modified seed before China gave import approval. The JPML centralized about 177 suits over Syngenta’s decision to commercialize corn seeds with a genetically modified trait, known as “MIR162,” that gives the plants increased resistance to certain insects. The U.S. Department of Agriculture authorized the introduction of the trait in April 2010, by which time the U.S. Environmental Protection Agency (EPA) and the U.S. Food & Drug Administration (FDA) had already approved the trait, though the Chinese government has not yet approved it.

The panel said it chose the “readily accessible” district of Kansas largely because it could then be assigned to U.S. District Judge John W. Lungstrum, whom it said was “well-versed in the nuances of complex, multidistrict litigation.”

Syngenta commercialized the trait for the 2011 growing season under the brand name “Viptera.” Syngenta misled farmers into believing that approval from China was imminent, but the trait remains unapproved. Syngenta’s early release of Viptera corn cost the U.S. corn market somewhere between $1 billion and $3 billion due to the rejection and resulting seizures of U.S. containers and cargo ships transporting U.S. corn to China

Syngenta offered farmers a “side-by-side program,” which encouraged them to plant Viptera corn adjacent to other corn seed. But in so doing, the farmers risked co-mingling the GMO corn with the non-GMO corn, thereby making it likely that Chinese regulatory officials would reject U.S. shipments of corn. The U.S. Department of Agriculture determined that China purchased approximately 5 million tons of U.S. corn in 2012/13, making China the third-largest export market for U.S. corn. Since November 2013, however, Chinese imports for U.S. corn have decreased by an estimated 85 percent.