Monsanto's (MON) Alfalfa Faced with Another Lawsuit

Monsanto's (NYSE:MON) genetically modified alfalfa is indirectly under another lawsuit, as federal regulators were used by the Center for Food Safety, saying the U.S. Department of Agriculture's recent approval of genetically modified alfalfa was illegal.

The complaint alleges the approval is based on faulty information, and that genetically modified alfalfa will damage the organic industry because it could contaminate conventional or organic alfalfa. The alfalfa, developed by Creve Couer-based Monsanto, is engineered to withstand applications of the herbicide Roundup, which kills weeds but not the crop.

Monsanto said in a statement: "We are aware that CFS has filed yet another lawsuit, and we will be reviewing allegations. In late January, the USDA authorized planting of Roundup Ready alfalfa after preparing an extensive Environmental Impact Statement, providing several public comment opportunities and determining that Roundup Ready alfalfa is as safe as conventional alfalfa."

One plaintiff, Ed Maltby, head of the Northeast Alliance of Organic Dairy Producers, said, "Approving the unrestricted planting of GE alfalfa is a blatant case of the USDA serving one form of agriculture at the expense of others."

This is an odd comment in that the so-called organic farmers are doing the exact same thing Malty just accused the USDA of doing, creating an industry which is expected to be treated better at the expense of other forms of agriculture.

Monsanto closed Friday at $67.84, gaining $0.64, or 0.95 percent.