Arkansas PCB settlement sets $16 million initially, up to $80 million

Arkansas has settled its claims against Monsanto Company, Solutia Inc. and Pharmacia LLC over alleged PCB-related environmental harms. The agreement sets $16 million in initial payments and up to $64 million more in contingent payments, for a maximum of $80 million.

Attorney General Tim Griffin announced the settlement on October 2, 2026. The agreement resolves the state’s claims without a trial or a decision on the facts or law. The companies do not admit wrongdoing, fault, a legal violation or liability.

Initial payments and contingent recovery

The initial $16 million is divided into two $8 million installments. The first is due within 30 days after the agreement’s effective date; the second is due no later than July 1, 2027. Because the payment schedule for the first installment runs from the effective date, the agreement’s terms do not set a calendar due date for it.

The additional $64 million is not an unconditional payment. It depends on recoveries in Monsanto’s indemnity action against former PCB purchasers. The agreement’s recitals describe that case as pending in federal court in the Eastern District of Missouri and refer to a pending motion to remand.

The agreement also includes backstop provisions. If the indemnity action is fully resolved and contingent payments fall below a specified threshold, Monsanto must make an additional payment calculated under the agreement. If no trial has begun by the agreement’s fifth anniversary and qualifying settlements have not produced the specified contingent payment, Arkansas may elect a payment under the agreement’s terms.

Griffin described the state’s recovery as at least $32 million and up to $80 million. That announcement reflects the agreement’s additional payment provisions; the $80 million maximum is not all due as an immediate, fixed payment. The final amount depends in part on the indemnity action and the agreement’s conditions.

Claims, cooperation and use of funds

Arkansas asserted claims on its own behalf and on behalf of its citizens concerning alleged PCB-related environmental impairments. The settlement releases the companies and defined released persons from the state’s defined PCB-related claims. It preserves claims unrelated to PCBs and certain claims against people or entities not covered by the release.

In return, Arkansas agreed to provide reasonable cooperation with Monsanto’s indemnity action, including requested documents and information. The agreement also says the state may be asked to provide releases to parties that settle with Monsanto in that case.

The settlement restricts the money to restitution or remediation for alleged PCB harms. Griffin said the funds would be spent in furtherance of water quality. The agreement does not establish individual payments to Arkansas residents or identify a particular remediation project.

The settlement resolves the state’s claims, but it is not a finding that Monsanto caused specific contamination. The companies’ agreement to pay under its terms is not an admission of liability, and the contingent portion remains tied to the separate indemnity process.