Bayer proposes $7.25B settlement for Roundup cancer lawsuits
Bayer proposed a $7.25 billion settlement to resolve current and future lawsuits alleging Roundup weedkiller causes cancer, boosting its stock price.Summary
German pharmaceutical company Bayer announced a proposed settlement worth up to $7.25 billion to address tens of thousands of lawsuits claiming its Roundup weedkiller causes cancer. This move, announced on Tuesday, sent Bayer’s shares soaring and represents a significant step in managing the legal risks associated with Roundup, which Bayer acquired through its $63 billion purchase of Monsanto in 2018.
The proposed settlement, filed in Missouri, would establish a long-term claims program with capped annual payments over up to 21 years. Bayer faces claims from approximately 65,000 plaintiffs who allege developing Non-Hodgkin lymphoma and other cancers due to Roundup exposure. While the deal requires court approval and plaintiff participation, it aims to resolve both existing and future lawsuits, without Bayer admitting liability.
Despite the settlement, Bayer’s legal battles aren’t entirely over. The U.S. Supreme Court is scheduled to hear an appeal regarding Roundup’s cancer risk warnings, a case Bayer believes is crucial for limiting its liability. Investors remain cautious, as a loss in the Supreme Court could lead to new lawsuits. Bayer has previously paid around $10 billion to settle prior Roundup cases, but this new proposal seeks to comprehensively address future claims and provide long-term resolution.
(Source：Daily Sabah)