Jan 29 (Reuters) - Pesticide manufacturers Syngenta and

Corteva ( CTVA ) must face parts of a class action accusing the

agricultural industry giants of using a loyalty program to

stymie competition with rivals and keep prices artificially high

for farmers, a federal judge in North Carolina has ruled.

U.S. District Judge Thomas Schroeder in a decision on

Tuesday said farmers from California, Illinois, Florida, Texas

and five other states who sued the companies can proceed for now

with some claims under federal and state laws.

Schroeder said the farmers can seek an order to force the

pesticide makers to end their allegedly anti-competitive

conduct. The judge cut a federal antitrust damages claim, but

the farmers could be eligible for compensation under some state

law claims remaining in the litigation.

Syngenta and lawyers for the plaintiffs declined to comment,

and Corteva ( CTVA ) did not immediately respond to a request for one.

The farmers' lawsuit alleged Syngenta and Corteva ( CTVA ) used

loyalty agreements and rebate programs with distributors to

block generic manufacturers from making inroads into the market.

That allowed the companies to charge higher prices, according to

the farmers. Syngenta and Corteva ( CTVA ) have denied the claims.

The lawsuit mirrors a case being pursued by the FTC and a

group of states, including California, Texas, Indiana and

Illinois. The alleged exclusive-dealing scheme has caused

farmers to overpay annually by "many millions," according to the

FTC.

Schroeder of the federal court in Winston-Salem, North

Carolina, in a ruling last year said the government litigation

could move ahead.

Syngenta and Corteva ( CTVA ) had argued the farmers had not shown

how they were harmed, since they said they buy products from

distributors and retailers and not from the manufacturers.

The case is In Re: Crop Protection Products Loyalty Program

Antitrust Litigation, U.S> District Court for the Middle

District of North Carolina, No. 1:23-md-3062.

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