In August 2024, the U.S. Environmental Protection Agency (“EPA”) took extraordinary action to suspend, on an emergency basis, all registrations of the pesticide dimethyl tetrachloroterephthalate (also known as “DCPA” or “Dacthal”) manufactured solely by AMVAC Chemical Corporation (“AMVAC”), an AVD company on the basis that it posed significant risks to the unborn babies of pregnant mothers who were exposed to DCPA. These health risks include low birth weight, impaired brain development, decreased IQ and impaired motor skills.

This is the first time in 40 years that the EPA has used its emergency suspension powers, emphasizing the urgency and severity of the health risks posed by Dacthal.

EPA’s suspension came eleven years after it had alerted AMVAC to potential health risks related to DCPA. In 2013, the EPA had issued a “data call-in notice” to AMVAC requiring it to submit study results to support the product’s registration. However, the company failed to act for over ten years and finally in November 2023, after several more notices including a notice of intent to suspend DCPA (“NOITS”) for failure to provide adequate data in 2022, AMVAC submitted the required test results which made it clear to the EPA that the product’s exposure to pregnant mothers presented significant risks to their unborn babies. During this time, the dangerous product was already being widely used by the public who had unknowingly put themselves at the risk of potential fetal abnormalities.

In light of these circumstances, Berger Montague now investigates potential breaches of fiduciary duty by AVD’s Board of Directors for, inter alia, the failure to take appropriate action to ensure the safety of its products and its consumers and therefore exposing the company to significant litigation risks.

If you are an American Vanguard shareholder and would like to learn more about our investigation, please contact Berger Montague using the form above.