(Reuters) - A federal judge has rejected Bayer AG’s proposed $648 million settlement of class-action litigation by cities and other claimants over contamination from polychlorinated biphenyls, or PCBs, made by the former Monsanto Co.
In a Nov. 25 decision, U.S. District Judge Fernando Olguin in Los Angeles said the accord appeared “overly broad” because it could shield Bayer from future claims, and require the settling plaintiffs to indemnify Bayer against those claims.
Olguin also said most of the 2,528 class members stood to receive “very modest” payments of just $15,000 to $30,000, making the indemnification provision “troubling.”
Bayer, which bought Monsanto for $63 billion in 2018, said in a statement it would work with the plaintiffs to address Olguin’s concerns, and was confident it would reach a revised preliminary settlement by the Dec. 31 deadline he set.