24 January 2000 15:54 [Source: ICIS news]
HOUSTON (CNI)--Great Lakes Chemical confirmed Monday it has filed a lawsuit seeking $71m (Euro70.3m) from Monsanto, alleging that Monsanto provided inaccurate 1999 sales projections for the NSC Technologies unit sold to Great Lakes in April.
Filed in US District Court in Wilmington, Delaware, the lawsuit charges that NSC posted actual revenues of $33m in 1999 - about half the $68.2m projected by Monsanto a month prior to the sale.
NSC makes L-phenylaline, an amino acid for pharmaceuticals and a principal ingredient of the sweetener aspartame.
Indianapolis, Indiana-based Great Lakes is seeking $58m in actual damages plus $13m in punitive damages. Great Lakes calculated the $58m damages as the difference between the $125m paid for NSC and the $67m now considered as the real value.
Great Lakes charges that Monsanto also failed to disclose its knowledge that L-phenylaline suppliers had planned price cuts as rival sweeteners entered the market and that pending patent infringement litigation might affect the value of Monsanto's patent.
Monsanto is a life sciences company based in St Louis, Missouri. No one was immediately available Monday at the company to comment on the Great Lakes Chemical lawsuit.
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