Bayer AG’s Monsanto division has introduced a proposed $7.25 billion class settlement to resolve allegations asserting that its Roundup weedkiller caused cancer. This plan, announced on Tuesday, aims to address both existing and future claims against the company over a span of up to 21 years, pending approval in a Missouri state court.
Following Bayer’s acquisition of Monsanto in 2018 for $63 billion, it has been embroiled in litigation from roughly 65,000 claimants in the United States who allege that Roundup led to cancer diagnoses like non-Hodgkin lymphoma. Despite Bayer’s insistence on the safety of Roundup and its main ingredient, glyphosate, the proposed settlement seeks both to resolve ongoing cases and to curb future legal battles.
Alongside the proposed settlement, Bayer’s shares saw a notable increase as the company endeavors to rebuild investor trust, which has wavered due to past hefty jury awards against it. The U.S. Supreme Court has agreed to hear an appeal, a decision Bayer views as potentially pivotal in reducing its future litigation risks.
(With inputs from agencies.)