Investigation into American Vanguard's Board for Fiduciary Breaches

In September 2024, an investigation was launched into the Board of Directors of American Vanguard Corporation (AVD) due to potential breaches of fiduciary duties. This inquiry follows alarming actions taken by the U.S. Environmental Protection Agency (EPA) in August 2024, which suspended the registration of the pesticide dimethyl tetrachloroterephthalate (DCPA), manufactured by AMVAC Chemical Corporation, a subsidiary of AVD. The EPA's emergency suspension was prompted by significant health risks posed to unborn babies of pregnant women exposed to DCPA, including low birth weight and impaired brain development. The EPA had previously alerted AMVAC to potential health risks associated with DCPA, issuing a data call-in notice in 2013. However, AMVAC failed to provide the necessary study results for over a decade. It was only in November 2023, after multiple warnings, that AMVAC submitted the required data, revealing the serious risks of the pesticide. This delay in action raised concerns about the company's commitment to consumer safety and regulatory compliance. As a result of these developments, Berger Montague is investigating the Board of Directors for their failure to act responsibly in ensuring product safety, which has exposed AVD to significant litigation risks. The investigation highlights the urgent need for corporate accountability in the face of public health concerns. The situation underscores the critical importance of regulatory oversight and the responsibilities of corporate boards to protect consumers and uphold their fiduciary duties.