Bayer Will Pay Nearly $11 Billion Over Roundup Herbicide Claims
German chemical company Bayer AG will pay up to $10.9 billion to settle tens of thousands of lawsuits in the United States related to the herbicide Roundup.
As part of the agreement, Bayer will reserve between $8.8 billion and $9.6 billion to settle claims brought by lawyers for about 95,000 plaintiffs, as well as about 30,000 more claims that have not yet been settled. Another $1.25 billion will be reserved to settle potential future lawsuits.
However, the company still believes that glyphosate, the active ingredient contained in Roundup, is safe and does not cause cancer. Bayer has not admitted any wrongdoing and will continue to sell Roundup.
Investors have been waiting for a long time for the company to settle claims in order to find out how much the claims will cost it. The agreement does not preclude the filing of new lawsuits against the company, which is particularly feared by investors.
The company acquired the rights to Roundup as part of a deal to buy us company, Monsanto, for $63 billion in 2018. Roundup products will continue to be sold without any warning labels about the possibility of cancer, in connection with which the company risks facing new lawsuits, writes Dow Jones.
Bayer also settled two other cases involving Monsanto products - a banned chemical and another herbicide.
Bayer shares are down 1.5% in Thursday trading.