Syngenta faces a major legal trouble as a US federal judge in Kansas ruled that the claims of hundreds of thousands of corn farmers can go ahead as a class action.
The allegations against the Swiss based global agrochemical company are that it prematurely and irresponsibly sold Agrisure Viptera and Duracade biotech corn seeds.
This had caused significant losses to corn farmers nationwide, according to the plaintiffs.
Corn producers are expected to face an estimated loss of $5-7bn in both current and future revenue as a result of China’s halting of corn imports from the US.
China’s decision came after Syngenta's new genetically modified (GM) trait contaminated other US export shipments of corn.
It was also revealed that Syngenta’s GM corn was not approved by China at a time when the agrochemical company was already selling its GM seed across the US.
Federal Judge John W Lungstrum ruled that a class action was a better option rather than looking at hundreds of thousands of individual lawsuits.
Lungstrum in his statement said: "Tens of thousands of putative class members have not brought individual actions, and the great efficiencies that may be achieved make class actions superior to individual actions, despite the fact that so many individuals actions have been filed."
The Kansas court also appointed attorneys Scott Powell, Don Downing, William Chaney and Patrick Stueve to represent the class.
Attorney Scott Powell said that the court’s ruling makes it easier and affordable for farmers to fight their case against the company.
Powell added: "Instead of having to retain and pay individual counsel, file their own lawsuit, produce voluminous farm records, sit for a deposition and appear at trial, the Court found that all class members may attempt to prove their claims through a limited number of class representatives.
“If those class representatives win, all class members win. No individual farmer has to file a lawsuit to seek a recovery."
Following the export rejection in China due to contamination of the Agrisure Vipterat trait, Syngenta has faced a number of cases against it from not only farmers but also bigger companies like Archer Daniels Midland and Cargill.
