Bayer Faces Lawsuit for Alleged Monopoly on GMO Corn Seeds in US

• Latham alleges Bayer prohibited independent seed companies from developing generic versions of NK603 corn seeds even after patents expired in 2022, while continuing to charge royalties and raising licensing fees
• The lawsuit claims Bayer retaliated against Latham for developing competing products by using non-public information to steal business, leaving the company 'on the verge of bankruptcy'
• Bayer's crop science sales jumped 17.9% to 3 billion euros in Q1, while the company already faces tens of thousands of lawsuits alleging Roundup causes cancer

Summary: Bayer Faces Monopoly Lawsuit Over GMO Corn Seeds

Iowa-based Latham Quality has filed a federal lawsuit against Bayer, alleging the German pharmaceutical and chemical giant used illegal anti-competitive practices to monopolize the U.S. genetically engineered corn seed market, generating "hundreds of millions, if not billions, of ill-gotten dollars."

Key Allegations

The lawsuit, filed in U.S. District Court for the Eastern District of Missouri and made public on May 27, centers on Bayer's control of NK603 corn seeds, which resist the company's Roundup weedkiller. Approximately 92% of U.S. corn acres use herbicide-tolerant seeds, with nearly all genetically engineered hybrid corn containing the NK603 trait.

Latham alleges Bayer:

• Prohibited independent seed companies from developing generic versions of NK603 even after its patent expired in 2022
• Continued charging royalties and raised licensing fees post-patent expiration
• Retaliated against Latham for attempting to develop competing products, leaving the company near bankruptcy
• Used non-public information to steal business from competitors

Company Response and Market Context

Bayer denies the allegations, stating the corn seed market is "competitive, fair and diverse" and pledging to respond in court. The company acquired Monsanto in 2018 and is already defending thousands of lawsuits claiming Roundup causes cancer.

The lawsuit proposes class-action status seeking treble damages. It comes as President Trump pledged to address anti-competitive behavior in food supply chains, while the DOJ recently required Bayer to remove anti-competitive provisions from its loyalty programs.

Bayer's crop science division reported Q1 revenue of €3 billion ($3.49 billion), up 17.9% year-over-year.