Bayer Settles US Farmers' GM Rice Contamination Lawsuits For $750 Million

Bayer AG's unit Bayer CropScience agreed to pay $750 million to settle lawsuits filed by thousands of U.S. farmers who claimed that a line of the company's genetically modified (GM) rice contaminated crops and damaged their export value. Farmers suffered financial losses after rice futures declined around 14% days after the U.S. Department of Agriculture announced in August 2006 the discovery of the contamination of non-GM crops from nearby farms. Exports also slowed down as the European Union, Japan, Russia, and other anti-GM markets stopped buying or demanded testing of U.S. rice for GM contamination. Bayer has denied allegations of negligence during the GM rice test planting.