CHARLESTON, W.Va. — West Virginia attorney General J.B. McCuskey announced a major settlement Tuesday with Monsanto Company, Solutia Inc., and Pharmacia LLC, which resolve the state’s claims involving PCB contamination.
The settlement will guarantee a $24.5 million payment to West Virginia, and the total potential value could reach up to $60.5 million by the end of 2030. $12.5 million of the guaranteed $24.5 million payment will be paid to the state by the end of the year.
The suit relates to PCBs persisting in West Virginia’s environment, despite their ban in 1979. PCBs are toxic chemicals that are linked to cancer and other harmful effects to the human body.
Nationwide, complaints allege Monsanto of producing 99 percent of all the PCBs in America. Complaints from other states say Monsanto knowingly concealed their environmental and health risks for decades.
“West Virginia communities have shouldered the burden of PCB contamination for far too long, impacting our rivers, land, and health,” McCuskey said in a statement. “This settlement agreement ensures that Monsanto is held accountable for the environmental damage caused by PCBs decades ago and will be critical in our ongoing efforts to protect West Virginians for generations to come.”
According to the release from McCuskey’s office, over 540 acres of lakes and 440 miles of rivers and streams in West Virginia are believed to be impaired by PCBs.
Monsanto released a statement regarding the recent settlement agreement.
“Monsanto has reached settlement agreements with West Virginia and Illinois to resolve all claims relating to polychlorinated biphenyls (PCBs), a legacy product the Company voluntarily ceased producing in 1977 at values that are in the Company’s best interest. The settlements contain no admission of liability or wrongdoing by the company. Under the terms of the agreements, Monsanto will make upfront payments of $12.5 million to West Virginia and $80 million to Illinois ($40 million of which will be paid in 2026). The settlements include additional contingency payments within five years that are tied to the outcome of Monsanto’s pending action in Missouri to enforce its indemnity rights against its largest former customers,” the statement said.
“Both states agreed to cooperate with Monsanto in this action, having determined there is a substantial basis for the company’s pending indemnity case and a significant portion of the liability should be borne by Monsanto’s former customers. Under the terms of the agreement, West Virginia could be paid up to an additional $48 million while Illinois could be paid up to an additional $200 million. The settlements include smaller backstop payments if the indemnity litigation results in substantially less than the target recoveries set forth in the agreements.
“During the time of manufacture, Monsanto conducted hundreds of studies on PCB safety, provided appropriate warnings to its sophisticated industrial customers based on state-of-the science at the time and cooperated with the U.S. government’s 1972 interdepartmental study. To recover a substantial portion of its PCB-related litigation costs, Monsanto filed a complaint in Missouri to enforce its rights under 1972 indemnity contracts with its six largest former PCB customers. Under these contracts, these sophisticated companies agreed to indemnify Monsanto for PCB-related litigation costs. The litigation against the former PCB customers remains pending.”