Bayer has announced a landmark settlement plan, involving a $7.25 billion proposal to settle numerous lawsuits accusing its Roundup weedkiller of causing cancer. The settlement, aimed at resolving both current and future claims, requires court approval and a minimum plaintiff opt-in rate to proceed. Despite optimism, Bayer faces ongoing challenges with litigation costs expected to rise significantly.
The German pharmaceutical and agrochemical giant acquired Roundup through its $63 billion acquisition of Monsanto in 2018. Currently, around 65,000 plaintiffs have filed lawsuits across U.S. state and federal courts, linking their cancer diagnoses to Roundup exposure. The agreement does not admit liability or wrongdoing by Bayer and allows clients diagnosed with non-Hodgkin lymphoma before the settlement to file claims over the next 21 years.
Bayer anticipates further financial pressures as litigation payouts loom in the coming years. The proposed deal coincides with the U.S. Supreme Court agreeing to hear an appeal potentially impacting the company’s future liability. There are concerns among investors that a ruling unfavorable to Bayer could lead to further lawsuits. Previously, Bayer either won or faced substantial jury awards, prompting a pressing need for a comprehensive litigation strategy.