A company under the control of American billionaire Ira Rennert has agreed to a $150 million settlement with 1,373 Peruvian citizens who claimed they were exposed to lead and other dangerous substances while growing up near a smelter in Peru, according to attorneys representing the plaintiffs.
The deal involves Doe Run Resources, which is part of Rennert’s New York-based holding company, Renco Group. The settlement was announced Tuesday in a St. Louis federal court — the same day the first of four planned bellwether trials was set to kick off in the case, which has dragged on for 19 years.
Plaintiffs’ attorney Jerome Schlichter confirmed in a phone interview that neither Doe Run nor the other defendants admitted any wrongdoing as part of the agreement.
The plaintiffs alleged that Doe Run released lead, arsenic, cadmium, and other hazardous materials from a smelter located in La Oroya, Peru — a facility that a subsidiary of the company purchased back in 1997. They further argued that some of the negligent decision-making took place on U.S. soil, making the company liable for physical harm, learning disabilities, emotional suffering, lost wages, and other damages.
For its part, Doe Run maintained that the La Oroya area had been polluted for decades — both during private ownership and under Peru’s government — but argued that the government failed to honor its contractual obligation to address the environmental damage, effectively “abdicated” its responsibility.
Doe Run Chief Executive Matt Wohl issued a statement saying, “We elected to put this behind us and focus on what matters — running our business, serving our customers, and investing in new technologies.”
Schlichter said he expects to submit a formal settlement agreement to the St. Louis court within roughly seven to ten days. The deal still requires approval from U.S. District Judge Catherine Perry, and legal fees will be taken out of the total settlement amount.
Reflecting on the lengthy legal fight, Schlichter said, “A 19-year battle can result in success when clients persevere. It’s also extraordinary in that people in rural, impoverished Peru can find their way to an American courtroom to bring their case.”
Rennert, who is 92 years old, has a net worth of $3.8 billion, according to Forbes magazine.
