Bayer's $7.25 Billion Settlement to Tackle Roundup Cancer Lawsuits

Bayer's Monsanto unit has agreed to a $7.25 billion settlement to address current and future lawsuits claiming its Roundup weedkiller causes cancer. The settlement involves capped annual payments over up to 21 years and does not admit liability. Bayer expects litigation-related costs to increase significantly.

Bayer's Monsanto division has reached a substantial settlement of up to $7.25 billion to resolve ongoing legal cases involving claims that the Roundup weedkiller causes cancer. This strategic move aims to mitigate Bayer's legal risks since its significant acquisition of Monsanto in 2018 for $63 billion.

The settlement proposal, filed in St. Louis, Missouri, is designed to manage around 65,000 claims from plaintiffs alleging they developed cancer due to Roundup. Bayer's shares rose by 7.7% following the announcement, as the agreement promises to reduce future legal liabilities.

Although the settlement does not require Bayer to admit wrongdoing, it allows the company to retract from the agreement if insufficient plaintiffs opt in. This development comes as the U.S. Supreme Court prepares to hear an appeal key to Bayer's legal strategy, with the company emphasizing that federal law should preclude state-level lawsuits.

(With inputs from agencies.)