MINNEAPOLIS, Feb. 19, 2004 (PRIMEZONE) -- The Minnesota Supreme Court upheld a judgment against BASF Corporation, the subsidiary of German multi-national company BASF AG, maker of Poast and Poast Plus herbicide, ruling that the company must pay farmers nationwide $52 million as a result of a class action suit. The ruling moves farmers one step closer to receiving money for economic injuries inflicted between 1992 and 1996.
On December 6, 2001, a 12-member jury of the Norman County, Minnesota court awarded farmers $15 million in the case of Peterson v. BASF Corporation. Since BASF was sued under the New Jersey Consumer Fraud Act, the court then tripled the award to farmers. The trial court judge, Michael Kraker, raised the total amount BASF must pay America's farmers to $52 million with interest and costs. On March 11, 2003, the Minnesota Appeals Court agreed with Judge Kraker and affirmed the opinion in all respects.
The farmers are represented by Hugh Plunkett and Rob Shelquist of the Lockridge Grindal Nauen law firm and Doug Nill, all from Minneapolis. Rob Shelquist said: "Our clients and the class members have been watching this case from the day it was filed in 1997. Our hope is to move forward quickly to get money to the injured farmers."
About Peterson v. BASF Corporation
BASF originally registered a herbicide called Poast with the Environmental Protection Agency (EPA) in the 1980s to treat major and minor crops. At that time, Poast had little competition in the marketplace. As competition increased in the lucrative major crop market, BASF issued a "new" herbicide, which was virtually the twin of Poast, called Poast Plus. Though the EPA approved Poast Plus for the same major and minor crops as Poast, BASF marketed its "new" herbicide for use on just four major crops and sold it at a cheaper price.
Both herbicides contain the same active ingredient (sethoxydim developed by Nippon Soda) in different concentrations, but when mixed according to the packaging, the mixture resulted in the same amount of active ingredient per acre. BASF labeled the products differently, omitting certain EPA-approved crops from listings on the "new" label, so minor-crop farmers would have to pay more per acre for Poast, even though the EPA actually approved both herbicides as safe for the same crops. Said Hugh Plunkett, "In 1992, Poast Plus was selling at around $50 per gallon while minor crop farmers were paying at least $100 per gallon for Poast." BASF executives admit in court testimony that, "From 1992 through 1996, minor crop farmers paid an average of $32 per gallon more for the same weed killing ingredient," added Hugh Plunkett.
In 1992, BASF began a marketing campaign based on false advertisement of Poast and Poast Plus and warning farmers of the dangers associated with using herbicides on crops not listed on the product labels (even though EPA had approved such uses as safe). Further, BASF perpetuated the deception by turning in their own dealers and farmers for prosecution if they were found using the herbicides on off-label crops.
The class action, led by eleven Midwest farmers, first came to the Red River Valley court in December of 1997. The Norman County verdict ranked as the 47th largest verdict nationwide in 2001 and one of the highest ever in Minnesota.
About Lockridge Grindal Nauen P.L.L.P.
Lockridge Grindal Nauen is a Minneapolis-based law firm that deals with complex litigation and governmental affairs. The firm has offices in Minneapolis and Washington, D.C. Well known for aggressive and professional civil litigation by attorneys experienced in antitrust, securities, commercial, environmental law, employment, consumer fraud, healthcare, Indian law, intellectual property, and telecommunications, Lockridge Grindal Nauen combines in-depth knowledge and effective strategy to get its clients desired results both in and out of the courtroom. For more information on Lockridge Grindal Nauen, please visit www.locklaw.com or call (612) 339-6900.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca