LINCOLN, Neb. (DTN) -- Alexander, Iowa-based Latham Quality Inc. alleges in a new lawsuit that Bayer illegally controlled the NK603 genetically engineered corn trait that makes corn resistant to glyphosate even after a patent covering NK603 expired in November 2022.

Latham is a family owned, third-generation Iowa seed company that produced hybrid corn and soybean seeds for farmers across seven states.

In the lawsuit filed in the U.S. District Court for the Eastern District of Missouri, Latham said its sales grew every year from 2009 to 2021. That's when Latham alleges Bayer's conduct began to take a toll.

By August 2024, Latham said it was forced to sell its retail seed brand to MS Technologies LLC as a direct result of financial damages caused by Bayer.

As a result, Latham Hi-Tech Hybrids, Inc. changed its name to Latham Quality, Inc., and continues to condition, package and deliver Latham Hi-Tech seeds "pursuant to an agreement with MS Tech," the lawsuit said.

DTN reached out to Latham Quality Inc. and MS Technologies LLC seeking additional details.

Latham argues that when a patent expires, the technology then enters the public domain, allowing generic competition to then drive down prices.

"In a competitive market, the input price of NK603 and of selling hybrid corn seed containing NK603, would have fallen following the expiration of Bayer's last United States patent in November 2022," the lawsuit said.

"Even four years later, no viable competition to Bayer has emerged. This is the direct result of Bayer's anticompetitive conduct to maintain its monopoly."

Latham alleges in the lawsuit that Bayer then entered into an agreement with Corteva, whereby Corteva would continue paying royalties to Bayer on NK603 even after the patent expired.

The complaint alleges the agreement effectively blocked Corteva from offering generic NK603.

"Until no earlier than February 2026 and perhaps later, Corteva has been foreclosed from competing with Bayer based on their horizontal, anticompetitive agreement," Latham alleges.

"Corteva cannot offer generic NK603 because it was required to pay post-patent royalties to Bayer. This allowed Bayer to continue charging supra-competitive prices market-wide."

Latham said that Bayer continued to collect royalties on NK603 after the patent expired.

What's more, the lawsuit alleges Bayer used its preferred partner program to impose rebates that forced independent seed companies to sell Bayer products almost exclusively.

Latham said that after Bayer learned Latham was continuing its corn-breeding program, "Bayer's representative in late April 2022 warned it to stop that effort and stay 100% loyal to Bayer."

When Latham didn't comply, the complaint stated, Bayer began offering discounts on seed to Latham's customers.

"Channel and DEKALB (both owned by Bayer) offered Latham's customers deep, below-cost discounts on Bayer hybrid corn and soybean seed that those customers had previously -- in some cases for years -- purchased from Latham," the complaint stated.

"In the span of about two weeks, Latham lost over $8 million in annual sales to seed dealers, a significant portion of which was lost to Channel or DEKALB. Latham's customers expressed regret that they could no longer afford to do business with Latham because Channel or DEKALB offered staggering discounts of $50 to $70 off per unit of corn compared to Latham's prices. Such prices were below cost -- less than the royalties Latham paid to Bayer to sell the same seed being offered by Bayer's own brands."

When contacted by DTN for comment, Bayer said it will fight the allegations.

"Bayer believes the allegations lack merit and will respond to the complaint in court," the company said. "The company has strong defenses to these allegations. The crop input and corn seed markets are competitive, fair and diverse, and Bayer competes fairly in all facets of its agricultural business and in compliance with applicable laws. A prior lawsuit alleging anticompetitive conduct by Bayer and others related to crop inputs was dismissed in its entirety, and the Eighth Circuit Court of Appeals recently affirmed the dismissal."

DTN also reached out to Corteva for comment.

Latham is bringing claims under the Sherman Antitrust Act, the Clayton Act, as well as Missouri state laws.

The lawsuit asks the court to award treble damages, or three times actual damages, which is allowed under the Sherman Act and the Clayton Act. Latham asked the court to prohibit Bayer from charging royalties on NK603 in the U.S. and to provide the NK603 technology to potential generic manufacturers.

"Bayer's illegal conduct suppresses competition in a vital sector of the United States economy, irrevocably damaged Latham and dozens, if not hundreds, of other independent seed companies and hurts American farmers," Latham said.

The lawsuit also alleges Bayer used Latham's own confidential customer sales information against it.

On May 20, 2026, the U.S. Department of Justice announced it had reached an agreement with Bayer CropScience to remove "potentially anticompetitive provisions" from its seed loyalty program. (https://www.dtnpf.com/…)

In October 2025, John Latham, president of Latham Quality Inc., testified before a Senate Judiciary Committee hearing looking at factors driving up seed and fertilizer prices for farmers. You can read more about that here: https://www.dtnpf.com/….

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

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