Feb 20 (Reuters) - Pesticide manufacturers Syngenta and

Corteva ( CTVA ) must face a lawsuit from the state of Arkansas accusing

them of suppressing competition for pesticide sales and keeping

prices artificially high, a federal judge has ruled.

U.S. District Judge Brian Miller in Little Rock, Arkansas,

said the state can pursue its claims that loyalty programs run

by Syngenta and Corteva ( CTVA ) that provide rebates for pesticide

purchases violate federal and state antitrust and

consumer-protection laws.

Arkansas' lawsuit claimed Syngenta and Corteva ( CTVA ) are paying

pesticide distributors or retailers to restrict their purchase

of generic crop-protection products that contain specific

ingredients.

The lawsuit said distributors and retailers fear losing

their loyalty payments and so have no incentive to sell more

generics.

Syngenta and Corteva ( CTVA ) did not immediately respond to requests

for comment. They have denied any wrongdoing.

In a statement, Arkansas Attorney General Tim Griffin, a

Republican, said the state "has legitimate claims against the

anticompetitive rebate programs" of Syngenta and Corteva ( CTVA ) and

will seek to "hold companies accountable for practices that harm

the market and ultimately consumers."

Syngenta and Corteva ( CTVA ) in seeking dismissal of the state's

lawsuit said their rebate programs lowered prices and denied

they are anticompetitive.

They also said the state should have been barred from

bringing antitrust claims on behalf of consumers.

Miller said the state had sufficiently alleged Arkansas

residents were paying higher prices for pesticide products based

on the claimed anticompetitive conduct.

Syngenta and Corteva ( CTVA ) are fighting other lawsuits challenging

their loyalty programs.

In January, U.S. District Judge Thomas Schroeder in the

Winston-Salem federal court said the companies must face some

antitrust claims lodged by farmers in California, Texas, Florida

and other states.

Schroeder last year also said that a related U.S. Federal

Trade Commission lawsuit, filed with a bipartisan group of U.S.

states, could move forward.

The case is State of Arkansas v. Syngenta Crop Protection AG

et al, U.S. District Court for the Eastern District of Arkansas,

No. 4:22-cv-01287-BSM.

For Arkansas: Arkansas Attorney General Tim Griffin; Brian

Reddick of Reddick Law; Stuart Davidson of Robbins Geller Rudman

& Dowd; and W. Mark Lanier of The Lanier Law Firm

For Syngenta: David Toscano of Davis Polk & Wardwell

For Corteva ( CTVA ): David Marriott of Cravath, Swaine & Moore

Read more:

Syngenta, Corteva ( CTVA ) must face part of farmers' antitrust

lawsuit over pesticide prices

Bayer, others defeat US farmers' chemical price-fixing

lawsuit

US states flex new power to steer antitrust lawsuits

Syngenta, Corteva ( CTVA ) must face FTC lawsuit over pesticide

'loyalty programs