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Bayer Agrees to Pay $10 Billion in Cancer Lawsuit Settlements

On Wednesday, Bayer (BAYRY) announced it will pay $10 billion to settle over 100,000 pending lawsuits over weedkiller Roundup. Bayer purchased the manufacturer of Roundup™, Monsanto, in 2018. Three lawsuits already in trial will not be covered under the settlement.

In 2018, a groundskeeper in California named Dewayne Johnson sued, claiming the ingredients in the popular weedkiller led to his development of non-Hodgkin lymphoma. Johnson won his court case and was awarded $290 million by the jury. The amount was eventually lowered by a judge to $78 million. In a similar case in 2019, a husband and wife sued Bayer, claiming Roundup™ had led to their illnesses, and won $2 billion.

A large amount of plaintiffs in the cases being settled by Bayer are claiming that an ingredient found in Roundup™, glyphosate, is cancer-causing. Some of the lawsuits claim Monsanto was aware that glyphosate was harmful and ignored warnings. The World Health Organization noted that glyphosate should be considered “probably carcinogenic to humans” back in 2015.

In a press release Wednesday, Bayer CEO Werner Baumann stated, “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. It resolves most current claims and puts in place a clear mechanism to manage risks of potential future litigation,” he continued, “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.”

At the time of this article’s writing Thursday, Bayer stock was down 7.45 percent to $19.01.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.

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