Monsanto has agreed to settle for $39.5 million a class action claim it falsely advertised that a main ingredient in its Roundup weedkiller only affects plants, not humans or pets.
The action is not connected to the continuing litigation against St. Louis headquartered Monsanto and its parent company, Bayer, over claims that the active ingredient, glyphosate, is linked to users contracting certain forms of cancer.
A settlement agreement in the false advertising action was filed with the U.S. District Court for the Western District of Missouri, which has to sign off on the deal in Lisa Jones et al versus Monsanto. Attorneys will receive a maximum of just under $10 million in fees and costs, according to settlement documents.
Under the agreement, language will be removed from the label stating that glyphosate only affects an enzyme found in plants.
"The Roundup advertising class action has been settled to the satisfaction of all parties subject to court approval," Bayer said in a statement to the St. Louis Record.
The company added, "This agreement is not related to the Roundup product liability litigation, for which the parties continue to mediate in good faith under the auspices of Ken Feinberg.
"While Bayer is constructively engaged in the mediation process, there is no comprehensive agreement at this time. There also is no certainty or timetable for a comprehensive resolution.”
According to the preliminary agreement in the Jones case, the action related to alleged consumer fraud where the plaintiffs claimed that Monsanto advertised its Roundup Weed & Grass Killer products with a misleading label.
The statement was that glyphosate targets an enzyme found in plants but not in people or pets. Several suits were filed in different parts of the country, but this settlement covers all claims made nationally
"Following court-ordered mediation in this matter and extensive arms’-length negotiations, the parties settled on a nationwide basis," according to the settlement agreement.
Monsanto is agreeing to establish a $39.55 million common fund, with the class receiving payments of ten percent of the average retail price with either proof of purchase or a "declaration under the penalty of perjury of the identity and quantity of products purchased."
Class members will be able to claim refunds of between 37 cents to $10.63 per unit depending on the size of the bottle.
Attorneys’ fees, costs, and incentive payments to the lead plaintiffs will be paid from the fund. Monsanto will not contest attorney fees that do no exceed 25 percent of the amount available, or "reasonable incentive payments."
The plaintiffs are represented by the Richman Law Group of New York, Bell Law of Kansas City, and Baum, Hedlund, Aristei & Goldman of Los Angeles.