Key Takeaways:
- Monsanto has reached agreements in principle to resolve more than 200 PCB-related claims at Sky Valley Education Center.
- Adverse verdicts from prior cases involving 49 plaintiffs remain under appeal.
- Settlement terms are confidential and subject to final approval by all parties.
- Costs of the settlements are covered by the company’s existing PCB litigation provision.
- Monsanto maintains a multi-pronged strategy to manage litigation risks through the end of 2026.
Monsanto Resolves Sky Valley Education Center Claims
Monsanto has announced that it has reached agreements in principle to resolve all cases related to the Sky Valley Education Center, involving over 200 plaintiffs alleging injuries from exposure to polychlorinated biphenyls (PCBs) at the school campus in Washington state. The settlement agreements are confidential and require approval of final settlement documents by all parties.
Ongoing Appeals and Legal Strategy
The company noted that prior adverse jury verdicts in nine cases involving 49 plaintiffs remain under appeal and are not part of the current settlements. Each appeal involves unique factual and legal circumstances, including questions of law not addressed in the pending Washington State Supreme Court case, Erickson.
Monsanto continues to pursue a multi-pronged legal strategy to mitigate litigation risks, aiming to manage exposures related to PCB claims through the end of 2026. While the company remains confident in its defenses and willingness to go to trial, it is also prepared to resolve cases when strategically advantageous.
Coverage of Settlement Costs
The financial impact of the settlements is fully covered by Monsanto’s PCB litigation provision established in Q2. This provision also addresses other PCB-related litigation, including the previously announced Burke case.
Historical Context of PCBs
PCBs were widely recognized as nonflammable safety fluids and were required by federal standards for electrical applications to reduce fire risks and protect the electrical grid. Monsanto voluntarily ceased all PCB production in 1977. In 1972, the Interdepartmental Task Force on PCBs, comprising eight federal agencies, concluded that continued manufacture of PCBs for certain electrical uses was necessary.
Monsanto has also filed a complaint in Missouri to enforce indemnity agreements signed in 1972 with its largest former electrical manufacturing customers, which require those customers to fully defend and indemnify Monsanto for PCB-related claims associated with bulk PCB use.
