Bayer has proposed a $7.25 billion nationwide settlement through its Monsanto unit to resolve tens of thousands of lawsuits alleging that Roundup weedkiller caused cancer. The German company, which acquired Monsanto for $63 billion in 2018, faces claims from about 65,000 plaintiffs in U.S. courts who allege they developed non-Hodgkin lymphoma after exposure to the product. The agreement, filed in state court in St. Louis, Missouri, would establish a claims program funded through capped annual payments over 21 years. Chief Executive Bill Anderson said that he is confident the proposed class action settlement will resolve the vast majority of the claims. Bayer shares rose as much as 7.7% following the announcement.
The proposal requires court approval and participation from a minimum number of plaintiffs. It allows eligible claimants to seek compensation under a tiered system that could provide payments of up to $198,000 or more, according to attorney Eric Holland. Investor Ingo Speich said, “Bayer's move will significantly reduce the legal risks,” though some shareholders cautioned that a pending U.S. Supreme Court case remains critical to limiting future liability.
