Company to Pay $40M in PCB Suit

A N N I S T O N, Ala., April 24, 2001 -- A company accused of poisoning thecommunity with toxic chemicals for decades and then covering it uphas agreed to pay $40 million to settle a lawsuit brought by nearly1,600 residents.

The chemical contamination allegedly was spread by the MonsantoCo., which manufactured PCBs in Anniston until 1972. Monsantochanged its name to Solutia Inc. in 1997.

The average payment to plaintiffs will be about $12,000, RalphKnowles, an attorney for the Anniston residents, said today. Eachplaintiff, including about 500 minors, will receive at least$5,000, he said.

As part of the settlement, the company also agreed to pay $2.5million to move plaintiffs who live close to the chemical plant;$3.5 million to a charitable foundation to assist residents exposedto PCBs and $1 million for part of the court costs.

The company said it did not admit guilt.

"It demonstrates that we're committed to the community and itpermits us to focus our attention on ... concerns closer to home,"said company lawyer Tom Bistline.

A judge must approve the settlement. A hearing was set forWednesday.

Legal Closure After Years of Debate?

Lawyers for the plaintiffs claimed that company documents showedMonsanto knew the chemical was hazardous by the 1960s but continuedto manufacture it without proper safeguards.

The company didn't deny the chemical escaped from the plant tothe water supply. But it said there was no proof any residents wereharmed.

PCBs, or polychlorinated biphenyls, were manufactured inAnniston from 1927 through 1972 for use as insulation in electricalequipment. The government banned production in the late '70s amidquestions about possible health risks.

PCB-laden wastewater and storm water from the plant emptiedinto a drainage ditch and creek in a poor section of Anniston. Fromthere, the water ran to Choccolocco Creek and Lake Logan Martin.

The company previously agreed to pay $43.7 million to propertyowners along creek and lake, where PCBs were found.