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In The News 2008-2009

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Headache for Bayer - Company faces hundreds of lawsuites over contamiated rice

Louisa Yanes

November 8, 2008

In 2006, the United States Government confirmed that a genetically modified (GE) strain of rice was found in supplies being sold for human consumption. LLRICE 601, also known as Liberty Rice, is a strain of rice that is altered to make it resistant to a particular brand of Aventis herbicide. Liberty Rice is a product of Bayer (of Aspirin fame). Bayer had been experimentally growing it in Louisiana, but dropped the project in 2001 before it could get FDA approval. Although this rice has not been grown in years, it somehow ended up in the 2005 harvest in thousands U.S. rice farmers in Midwest states.

This finding hurt these farmers ability to sell their produce on international markets due to many countries strict no tolerance stance on GE foods. The contamination also caused a drop in the price of rice. The former United States agricultural secretary, Mike Johanns, speculated these farmers' loss could amount to a staggering 1 billion dollars. In addition, many of these farmers were unable to plant rice crops the following years due to seed shortages caused by this contamination, and have had to take costly measures to clean up their farming operations from the Liberty Rice contamination.

Originally, famers sued Bayer individually or in groups. However, in 2006, the farmers banded together in a class action suit to sue Bayer for negligence and for unspecified damages. They moved to have the case tried in the Eastern District of Missouri. They argued this motion before the Judicial Panel on Multidistrict Litigation, who determined the move was appropriate in 2006.

In August 2008, Judge Catherine Perry ruled that despite the similarity of all the farmers' injuries, a class action suit was not appropriate. Although the group of farmers can now not force Bayer to settle, there is still hope that these farmers can collect damages. Individual trial dates will hopefully be set soon. If some farmers can win their suits, it could force Bayer to settle with the remaining plaintiffs.

Carey Gillam, U.S. Rice Farmers Want Class Action Against Bayer, Reuters, May 23, 2008

http://www.reuters.com/article/rbssHealthcareNews/idUSN2322513620080523.

Andrew Harris and Margaret Cronin Fisk, Bayer Avioded Class Action, Faces 1,200 Rice Suits (Update 1), Bloomberg.com, Oct. 15, 2008. http://www.bloomberg.com/apps/news?pid=20601087&sid=auu3BOBRYwaE&refer=home.

Allison Retkat, Lawsuits Brought by Midwest Rice Farmers are Consolidated and Heard, St. Louisa Daily Record, Dec. 22, 2006, available at http://findarticles.com/p/articles/mi_qn4185/is_/ai_n17072464?tag=artBody;col1.

Rick Weiss, U.S. Rice Supply Contaminated, Washington Post, Aug. 19, 2006, at A07, available at

http://www.washingtonpost.com/wp-dyn/content/article/2006/08/18/AR2006081801043.html.

In re LLRICE 601 Contamination Litigation, 466 F. Supp. 2d 1351 (J.P.M.L. 2006).