Insurance & Reinsurance
Bayer announced it will pay up to $10.9 billion to settle the majority of 125,000 claims that Monsanto's weedkiller Roundup causes non-Hodgkin's lymphoma.
Bayer announced on Wednesday, June 24, it will pay up to $10.9 billion to settle a majority of approximately 125,000 claims that Monsanto's weed killer Roundup causes non-Hodgkin's lymphoma. The settlement would end about 75% of the current Roundup litigation and cover approximately 95% of the Roundup cases pending trial. According to Bayer, the deal will include all litigation brought by plaintiff law firms leading the federal multidistrict litigation and California state court bellwether cases about the glyphosate-based herbicide.
Per Bayer, the settlement includes between $8.8 billion and $9.6 billion for resolving current Roundup litigation. This also includes plaintiffs who have hired attorneys but not yet filed claims in court and makes an allowance for the 25% of pending claims that are currently unresolved and still being negotiated. Bayer is also providing a separate payment of $1.25 billion for a class agreement that will address potential future cases brought by Roundup users who have not yet developed any illnesses. That class agreement will need the approval of U.S. District Judge Vince Chhabria of the Northern District of California, who is overseeing the federal MDL.
Bayer, which bought Monsanto in 2018, included in its announcement a statement from its CEO Werner Baumann, who said that the deal resolves most of the current litigation and establishes a clear way to manage future legal risks. The settlements contain no admission of liability or wrongdoing, according to the company.