Class action suit settlement gets Seal Beach almost $1 million

The money was used in 2023-24 budget

Last year, Seal Beach received $974,039 from a settlement in a class action lawsuit against Monsanto concerning PCBs. Seal Beach was one of several cities included in the suit.

The Sun has confirmed that the budget for 2023-24 included the almost $1 million settlement.

The Sun filed a Public Records Act Request on April 8, 2024:

“Page 49 of the 2023-2024 approved budget shows a “Settlement/Court Judgment of $974,039 for account 101-000-0000-47500. Where did these funds come from? Has the money been assigned or spent? If so, where?”

On April 17, 2024, the City Clerk’s Office sent the following email:

“Thank you for your request for public records. The City of Seal Beach has determined that the Finance Dept. has provided the following responsive to your Public Records Request. From Finance Dept: ‘The check was for the Monsanto Company settlement payment and was included in the FY 2022-23 Fund Balance. The Fund Balance was utilized in the FY 2023-24 Budget.’”

The Sun also obtained a copy of the 326-page settlement.

Background

The former Monsanto Company manufactured polychlorinated biphenyls from the 1930s to 1977, according to the settlement agreement.

“Plaintiffs asserted various claims against Defendant for alleged PCB-related environmental impairments, including impairments to water bodies. Plaintiffs alleged that PCBs are present at sites and public properties, including in stormwater, stormwater and wastewater systems, water bodies, sediment, natural resources, fish and wildlife. Plaintiffs sought compensatory damages and injunctive and equitable relief,” according to the settlement agreement.

The plaintiffs and the defendants Monsanto Company; Solutia Inc.; and Pharmacia LLC; and Does 1 through 100 agreed to settle the suit.

“NOW, THEREFORE, without an admission or concession on the part of Plaintiffs on the lack of merit of the Action or an admission or concession of liability or wrongdoing or the lack of merit of any defense by Defendant, it is stipulated and agreed by Defendant and Plaintiffs, acting for themselves and on behalf of the Settlement Class, that, on the following terms and conditions, the Action shall be settled and dismissed with prejudice as among Plaintiffs, the Settlement Class, and Defendant upon Final Approval of the Court after the hearing(s) provided for in the Settlement; and the Settlement Class Members shall release all Released Claims against Defendant and all Released Parties,” according to the settlement agreement.

The settlement was entered into on June 24, 2020, and amended on Dec. 28, 2020, March 19, 2021, and June 17, 2021, according to the settlement agreement.