Lawyers for the plaintiffs said on Wednesday that a business controlled by American billionaire Ira Rennert has agreed to pay $150 million to resolve claims brought by 1,373 people from Peru who say they were poisoned by lead and other hazardous substances while growing up near a smelter.
The settlement involves Doe Run Resources, a unit of Rennert’s New York-based holding company, Renco Group, and was announced in St. Louis federal court on Tuesday, the same day the first of four bellwether trials in the 19-year-old litigation was scheduled to start.
Allegations and scope of claims
Plaintiffs accused Doe Run of releasing lead, arsenic, cadmium and other toxic materials from a smelter located in La Oroya, Peru, which a Doe Run subsidiary acquired in 1997. The plaintiffs maintain that the contamination caused a range of harms, including physical injuries, learning impairments, emotional distress, lost income and other consequences.
They also contend that some of the mismanagement that led to these harms took place in the United States, and that this connection supports their pursuit of damages in U.S. courts.
Defendant response
According to the plaintiffs’ lawyer, Jerome Schlichter, Doe Run and the other defendants did not admit wrongdoing as part of the settlement. Doe Run has said the La Oroya smelter contaminated the surrounding area for decades while it was under private ownership and later when the Peruvian government controlled it, and it has asserted that the government "abdicated" its contractual responsibility to perform cleanup.
In a statement, Doe Run Chief Executive Matt Wohl said the company chose to resolve the dispute so it could "put this behind us and focus on what matters - running our business, serving our customers, and investing in new technologies."
Next steps in the courtroom
Schlichter told reporters he expects to file the settlement agreement with the St. Louis court within about seven to 10 days. The accord must receive approval from U.S. District Judge Catherine Perry. The lawyer also said legal fees will be deducted from the settlement amount.
Schlichter characterized the outcome as the result of sustained effort, saying "a 19-year battle can result in success when clients persevere," and noting the significance of people from rural, impoverished Peru bringing their claims to an American courtroom.
Additional context
The settlement names Ira Rennert as the controlling figure of the business. Rennert is 92 years old and is listed with a net worth of $3.8 billion according to Forbes.
This article presents the known facts from court filings and statements by counsel and company representatives; it does not allege or infer any facts beyond those publicly reported.