Investment Fund Sues Company for Misuse of Corporate Assets

June 9, 2014 10:21 AM
 

The suit contends that field trials showed that Optimum GAT did not work as expected.
 

The Ironworkers District Council of Philadelphia & Vicinity Retirement & Pension Plan is suing the DuPont Co. for $1 billion. The investment fund’s suit contends that DuPont officials misused corporate assets by promoting GAT (glyphosate acetolactate synthase) technology, despite knowing that it did not work.

The technology, which DuPont branded as Optimum GAT, was designed to provide glyphosate and acetolactate synthase (ALS) herbicide tolerance in corn and soybeans. In the process, it would have given farmers an alternative to Monsanto’s Roundup Ready-based products.

The Ironworkers are accusing DuPont of "civil fraud, negligent and intentional misrepresentation, waste of corporate assets and breach of fiduciary duties."

According to a Bloomberg story, the filing is a "derivative lawsuit, filed on behalf of the company with any damages earmarked for DuPont rather than shareholders. Money awarded to the company sometimes comes from directors’ and officers’ insurance and assessments from executives’ alleged wrongdoing."

The article went on to say that the defendants include Ellen Kullman, DuPont chief executive officer; and directors Eleuthere I. du Pont and Lamberto Andreotti, who is the chief executive officer of Bristol-Myers Squibb.
 

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