* Settlement with rice growers worth up to $750 mln
SAN FRANCISCO, July 1 (Reuters) - A Bayer AG (BAYGn.DE) unit will pay U.S. long-grain rice growers up to $750 million to resolve claims over contamination of the rice crop, the company and plaintiff lawyers announced.
The chemical and drug maker has been defending itself against claims from farmers across the United States after genetically altered rice developed by a subsidiary for research showed up in the food supply chain in August 2006.
The rice variety had not been approved for commercial cultivation and its presence in the U.S. crop led Japan and the European Union to restrict U.S. rice from crossing their borders, triggered a plunge in rice prices.
The long-grain rice in question had a protein known as Liberty Link, which allows the crop to withstand applications of a certain weed killer.
In a statement on Friday, Bayer said it believes it acted responsibly in the handling of its biotech rice, but considered it important to resolve the litigation.
Adam Levitt, an attorney for the rice growers, called it an excellent settlement.
"From the outset of this litigation, we made it clear to Bayer that the company needed to step up and take responsibility for damaging American rice farmers with its unapproved rice seeds," Levitt said in a statement.
More than 7,000 long-grain rice producers in Missouri, Arkansas, Louisiana, Mississippi and Texas claimed they suffered damage.
The farmers have won six jury trial verdicts against Bayer over its conduct, according to plaintiff lawyers.
Bayer said the settlement will apply to federal multi-district litigation, as well as state court cases.
The federal multi-district litigation in U.S. District Court, Eastern District of Missouri is In Re: Genetically Modified Rice Litigation, 06-md-1811.
(Reporting by Dan Levine; Editing by David Gregorio)
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