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Feb. 24, 2012 /PRNewswire/ -- This afternoon, Putnam Circuit Court Judge
Derek Swope granted preliminary approval to comprehensive settlements agreed to by Monsanto Company (NYSE: MON) and The Calwell Practice PLLC that resolve all claims in all pending litigation as well as all class actions filed in West Virginia. The litigation, including the pending class action suits relate specifically to a chemical plant once located in
Nitro, West Virginia and activities which took place 40 to 60 years ago.
"These settlements ensure that both individual and community concerns are addressed, and services are made available for the people of
Scott Partridge, Vice President of Monsanto Company. "We are pleased to resolve this matter and end any concerns about historic operations at the
"The settlements provide needed medical benefits and remediation services to the people of
Nitro and broader community," said Class Counsel
Stuart Calwell of the Calwell Practice. "The principal goal of the litigation was to provide long-term medical monitoring and to provide professional cleaning of individual homes."
These resolutions provide for eligible class members in the
Nitro community to have their health monitored and to have their houses professionally cleaned. Approximately 4,500 homes are located in areas where individual remediation of homes may be desirable. A program will be created to offer free professional cleaning of these homes and provide funding of up to
$9 million dollars for this purpose.
The parties have agreed that a thirty-year medical monitoring program will be established at a local hospital. Thousands of persons who lived, worked, or attended school in the
Nitro area during the period of time covered by the lawsuit will be eligible to apply for benefits. The plan will be supported by a primary fund of
$21 million dollars which will pay for medical testing of eligible class members. Up to
$63 million dollars in additional funding will be available over the thirty-year life of the medical screening program. In addition to the direct benefits these agreements will provide to the residents of the
Nitro area, Monsanto has agreed to pay Court approved legal fees and litigation costs incurred by Class Counsel over the last seven years.
The class action resolutions will now be fully reviewed by Circuit Judge
Derek Swope to ensure the fairness of the class action settlement agreements.
Monsanto noted that this settlement will allow it to maintain its focus on its global agriculture business and its commitment of investing in improved seed products for farmers throughout the world. Monsanto indicated that, for fiscal year 2012, the settlement will not affect ongoing earnings per share but the one-time expense will reduce as-reported earnings per share by approximately
History of Nitro Plant
Nitro, West Virginia plant was formerly owned and operated by Pharmacia and later by Flexsys, a joint venture between Solutia and Akzo Nobel Chemicals, Inc. The
Nitro plant operated between 1929 and 2004. Monsanto Company was spun-out from Pharmacia in 2000 and assumed certain obligations related to Solutia's former chemical business, including the
Nitro claims being settled. The settlement made no findings of wrongdoing against Monsanto or any of the entities that previously owned or operated the site including Solutia.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. To learn more about our business and our commitments, please visit:
www.monsanto.com. Follow our business on Twitter® at
www.twitter.com/MonsantoNews, on the company blog, Beyond the Rows at
www.monsantoblog.com, or subscribe to our
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Cautionary Statements Regarding Forward-Looking Information:Certain statements contained in this release are "forward-looking statements," such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits and the previously-announced SEC investigation; the previously reported material weakness in our internal controls over financial reporting; developments related to foreign currencies and economies; successful operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent Form 10-K Report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results. NOTE TO EDITORS: Solutia, a major producer of chemicals, was spun off from Pharmacia on Sept. 1, 1997. Monsanto, which itself is a later spinoff from Pharmacia, is a leader is agricultural productivity science and technology. Pharmacia was a publicly traded company prior to its becoming a subsidiary of Pfizer in April 2003. CONTACT Thomas Helscher ( firstname.lastname@example.org)
SOURCE Monsanto Company