Bayer Seeks Court Approval for $7.25 Billion Roundup Settlement

Bayer's Monsanto unit has urged a Missouri judge to approve a $7.25 billion settlement intended to resolve approximately 67,000 pending lawsuits and potential future claims. The litigation involves allegations that the weedkiller Roundup caused Non Hodgkin Lymphoma. The court is currently hearing arguments from Monsanto and the plaintiffs while collecting objections to the agreement negotiated in February.

Bayer aims to significantly reduce its legal risks associated with the Monsanto acquisition. The proposed settlement includes rules to stretch the process over 21 years and requires potential claimants to go through a settlement procedure before filing in court. Additionally, Bayer seeks to exclude punitive damages, which have previously resulted in multi billion dollar costs for the company.

Bayer has received support from a recent U.S. Supreme Court ruling. The court decided seven to two that federal law precludes state level lawsuits regarding alleged missing warning labels on Roundup. Bayer argues that it could not print warnings if the U.S. Environmental Protection Agency had determined the product was safe. Conversely, the lawsuits are based on a World Health Organization research agency study from a decade ago that classified glyphosate as probably carcinogenic.