Bayer agrees to settle legacy litigation and Roundup claims for over $10bn

German pharmaceutical firm Bayer has agreed to pay between $10.1bn and $10.9bn to settle three major litigations it inherited when buying Monsanto in 2018, including a proposal to resolve the majority of US claims against weedkiller Roundup for causing cancer. The payment, which needs court approval, covers about 75% – or 125,000 – of Monsanto’s Roundup weedkiller litigation claims, and 95% of all legal cases prepped for trial. Between $8.8bn and $9.6bn has been earmarked to resolve current Roundup litigation. A further $1.25bn will be put aside for potential future action. Bayer said it has established procedures to settle any future claims. The agreements contain no admission of liability or wrongdoing and Bayer said the settlement will mitigate the risks of protracted litigation. It will continue with its appeals against the three Roundup cases that have already gone to trial, including the case of school caretaker Dewayne Johnson who was awarded $79m. It said continuing with the appeals will provide greater legal guidance. Bayer added that continuing Roundup litigation ran the risk of further action, with lawyers advertising for more plaintiffs, which could have seen “upwards of 20 trials per year”. It said uncertain verdicts coupled with the reputational and business impact would likely exceed the settlement costs. “First and foremost, the Roundup™ settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end,” said the firm’s CEO Werner Baumann. “It resolves most current claims and puts in place a clear mechanism to manage risks of potential future litigation. It is financially reasonable when viewed against the significant financial risks of continued, multi-year litigation and the related impacts to our reputation and to our business,” he added. A Class Science Panel will be established to assess whether Roundup causes non-Hodgkin’s lymphoma and the minimum exposure levels. Bayer said this will “take the decision out of the jury trial setting and put it back in the hands of expert scientists”. It added it will be “bound” by the outcome of the panel, but added this is likely to take several years. At the same time, Bayer is pursuing legal support to dismiss states that want to enforce cancer warning labels on its Roundup products that contain glyphosate. Earlier this week, a US federal judge issued a permanent order against the state of California, blocking the need for cancer warning labels on Roundup products. Bayer will also pay up to $400m to settle dicamba drift litigation, which alleged the company’s XtendiMax herbicide damaged crops. The settlement covers claims for the 2015 to 2020 crop years. Claimants will be asked to submit proof of damage and links to dicamba. Bayer said it expects the co-defendant in the case, BASF, to contribute to the settlement. The third settlement announced yesterday will see Bayer pay $820m to settle most PCB water litigation exposure. Manufactured by Monsanto until 1977, the chemical PCB was blamed for contaminating waters.

Bayer agrees to settle legacy litigation and Roundup claims for over $10bn

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