Corteva to pay $35 million to settle pesticide antitrust lawsuit

Corteva Inc. has agreed to a $35 million settlement to resolve an antitrust lawsuit brought by the Federal Trade Commission and a coalition of 12 states, including Illinois, Oregon, and Washington. The lawsuit, filed in 2022, alleged that the company used a loyalty and rebate program to stifle competition from cheaper generic pesticides, forcing farmers to pay higher prices for essential crop protection products.

Under the terms of the proposed settlement, Corteva must dismantle its existing loyalty program. For the next 10 years, the company is prohibited from tying payments to distributors based on them purchasing more than half of their pesticide needs from Corteva, or from capping distributor purchases of generic equivalents at less than half. The restrictions apply to all of Corteva’s post-patent active ingredients.

The settlement funds will be distributed among the participating states, with Illinois expected to return approximately $7.5 million to affected farmers. While Corteva has agreed to the settlement, the lawsuit also made similar allegations against Syngenta Crop Protection, which continues to contest the accusations.