Monsanto, Solutia to fund most of PCB settlement

ANNISTON, Ala.--Monsanto Co. and Solutia Inc. will pay $440 million of a $600 million settlement of polychlorinated biphenyl claims in Alabama, with insurers funding the remainder.

The settlement ends the PCB litigation in Abernathy vs. Monsanto, which was under way in state court, and in Tolbert vs. Monsanto, scheduled to go to trial in federal court in October.

Plaintiffs sued for damages they claimed resulted from exposure to PCBs manufactured at a Monsanto plant in Anniston, Ala. Monsanto and Solutia, both based in St. Louis, are spinoffs from Pharmacia, which earlier this year became a subsidiary of Pfizer Inc.

Under the settlement, Monsanto will pay $390 million and Solutia will contribute $50 million. The companies' insurers have agreed to fund $160 million of the settlement. A spokeswoman for Monsanto would not provide coverage details.

The companies will also pay another $100 million or more to fund cleanup, prescription and other costs.