U.S. Court vacates EPA stop sale order on Amvac’s PCNB fungicide

Date:08-22-2011

American Vanguard Corporation announced that the Chief Judge for the United States District Court for the District of Columbia has granted the Company’s motion for summary judgment and vacated the Stop Sale, Use or Removal Order that had been issued in August 2010 by the United States Environmental Protection Agency relating to the Company’s USEPA-registered pentachloronitrobenzene (PCNB) product line. The Company’s wholly-owned subsidiary, Amvac Chemical Corporation, manufactures, distributes and sells PCNB as a fungicide for use primarily on turf.

The company’s motion sought relief on various grounds, including denial of due process. In reaching its decision, the court found that the agency official who signed the SSURO lacked the authority to issue such an order. Because SSURO was invalid on this ground, the court did not address AMVAC’s other challenges. The court remanded the matter to the USEPA for any further proceedings as it may deem appropriate.

Eric Wintemute, Chairman and Chief Executive Officer of the Company said, “We are, of course, pleased with the court’s decision. This has been a long and trying process which appears to be coming to a conclusion. We are now focused on working with the USEPA to get our amended end-use labels for PCNB products issued as quickly as possible, so that we can return to the market.” Mr. Wintemute concluded, “We are also grateful to our customers for their continued support and patience throughout this ordeal and hope to be in a position to meet their needs in the very near future.”