Bayer Pushes for Court Approval of $7.25 Billion Roundup Settlement

Bayer's Monsanto unit urged a Missouri judge on Monday to approve a proposed $7.25 billion class-action settlement to resolve the vast majority of U.S. lawsuits alleging its Roundup weedkiller causes cancer. The company's legal team presented the deal as the only viable path to end years of litigation that has created a significant financial overhang for the German conglomerate.

Arguments in Court

At a hearing in St. Louis, Monsanto attorney James Bennett told Judge Timothy Boyer that the company is prepared to continue fighting the claims in court if the deal is not approved, stating, "This is the settlement. There is not another settlement."

Supporters of the deal argued that recent legal developments have weakened the plaintiffs' position. Attorney Hunter Shkolnik, who represents 3,000 Roundup claimants, noted that a U.S. Supreme Court ruling in June that favored Monsanto on a key labeling issue prompted many of his clients who initially planned to opt out to reconsider and join the settlement. Opponents, however, argued the compensation is insufficient. Attorney T. Roe Frazer stated that the settlement does not adequately reflect the potential scope of future claims, as Roundup remains on the market.

Settlement Terms

The proposed framework would offer payouts to individuals who developed non-Hodgkin lymphoma after being exposed to Roundup. Key details of the offer include:

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• Payouts ranging from $10,000 to $165,000 per claimant.
• The final award would depend on factors like the severity of the cancer, the individual's age at diagnosis, and the nature of their exposure (e.g., residential or occupational).
• Critics, like Frazer, argued that few claimants would qualify for the maximum award, rendering the payouts inadequate.

Context and Market Impact

The Roundup litigation has been a major challenge for Bayer since its 2018 acquisition of Monsanto, costing the company billions and weighing heavily on its stock price. Bayer currently faces approximately 65,000 claims in U.S. courts from individuals who allege the weedkiller caused their cancer, a claim the company denies, citing scientific studies showing its key ingredient, glyphosate, is safe.

This is not Bayer's first attempt to resolve the legal battle. In 2020, the company spent about $10 billion to settle most of the then-pending lawsuits. However, a separate $1.25 billion plan to address future claims failed to secure court approval, forcing the company to devise this new strategy. The judge is not expected to issue an immediate ruling on the current proposal.