Released July 06, 2020 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--German pharmaceuticals and chemicals major Bayer AG (Leverkusan, Germany) has agreed to pay out $10.9 billion to settle more than 100,000 U.S. lawsuits that claimed the company's popular Roundup weedkiller causes cancer.
The company stated that the resolution will bring closure to approximately 75% of the current Roundup litigation "involving approximately 125,000 filed and unfiled claims overall." In the summer of 2018, Industrial Info reported that a U.S. court ruled that the Roundup weedkiller was responsible for causing cancer in a groundskeeper, resulting in 10% being knocked off the value of its share price. For additional information, see August 20, 2020, article - Roundup Cancer Ruling Knocks 10% of Bayer's Shares. Since then the company has suffered from an avalanche of lawsuits that have hammered the company's share price.
The company will make a payment of $8.8 billion to $9.6 billion to resolve the current Roundup litigation, including an allowance expected to cover unresolved claims, and $1.25 billion to support a separate class agreement to address potential future litigation. Industrial Info is tracking 84 Bayer projects worth more than $1.5 billion.
"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," said Werner Baumann, chief executive officer of Bayer, announcing the settlement plan. "It resolves most current claims and puts in place a clear mechanism to manage risks of potential future litigation. 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. The decision to resolve the Roundup litigation enables us to focus fully on the critical supply of healthcare and food. It will also return the conversation about the safety and utility of glyphosate-based herbicides to the scientific and regulatory arena and to the full body of science."
Bayer's Roundup, which contains glyphosate, was acquired in early 2018 when Bayer acquired Monsanto Company (St. Louis, Missouri), the world's largest supplier of seeds, in a $66 billion merger. The deal received the green light from the European Commission in April 2018. For additional information, see April 23, 2018, article - Bayer-Monsanto $66 Billion Merger Gets European Green Light.
Court-appointed mediator for the settlement talks, Kenneth R. Feinberg, commented: "The Roundup agreements are designed as a constructive and reasonable resolution to a unique litigation. The separate, independent settlements of the current claims are unique and a tribute to Bayer. The significant progress made to date -- which exceeds the initial participation rates of other claims resolution proceedings -- provides a robust framework that will enable the parties to bring closure to the current Roundup litigation in due course."
Bayer maintains that Roundup does not cause cancer. Baumann added: "Our company is grounded in the well-being of our customers. The extensive body of science indicates that Roundup does not cause cancer, and therefore, is not responsible for the illnesses alleged in this litigation. We stand strongly behind our glyphosate-based herbicides, which are among the most rigorously studied products of their kind, and four decades of science support their safety and that they are not carcinogenic."
In November 2017, the European Commission granted a fresh five-year licence for the glyphosate weedkiller's use in the European Union (EU). The decision was delayed by months, but finally the herbicide was granted a licence by the EU Commission's Standing Committee on Plants, Animals, Food and Feed. Of the 28 member states, 18 voted in favour, nine against and one abstained.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The company stated that the resolution will bring closure to approximately 75% of the current Roundup litigation "involving approximately 125,000 filed and unfiled claims overall." In the summer of 2018, Industrial Info reported that a U.S. court ruled that the Roundup weedkiller was responsible for causing cancer in a groundskeeper, resulting in 10% being knocked off the value of its share price. For additional information, see August 20, 2020, article - Roundup Cancer Ruling Knocks 10% of Bayer's Shares. Since then the company has suffered from an avalanche of lawsuits that have hammered the company's share price.
The company will make a payment of $8.8 billion to $9.6 billion to resolve the current Roundup litigation, including an allowance expected to cover unresolved claims, and $1.25 billion to support a separate class agreement to address potential future litigation. Industrial Info is tracking 84 Bayer projects worth more than $1.5 billion.
"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," said Werner Baumann, chief executive officer of Bayer, announcing the settlement plan. "It resolves most current claims and puts in place a clear mechanism to manage risks of potential future litigation. 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. The decision to resolve the Roundup litigation enables us to focus fully on the critical supply of healthcare and food. It will also return the conversation about the safety and utility of glyphosate-based herbicides to the scientific and regulatory arena and to the full body of science."
Bayer's Roundup, which contains glyphosate, was acquired in early 2018 when Bayer acquired Monsanto Company (St. Louis, Missouri), the world's largest supplier of seeds, in a $66 billion merger. The deal received the green light from the European Commission in April 2018. For additional information, see April 23, 2018, article - Bayer-Monsanto $66 Billion Merger Gets European Green Light.
Court-appointed mediator for the settlement talks, Kenneth R. Feinberg, commented: "The Roundup agreements are designed as a constructive and reasonable resolution to a unique litigation. The separate, independent settlements of the current claims are unique and a tribute to Bayer. The significant progress made to date -- which exceeds the initial participation rates of other claims resolution proceedings -- provides a robust framework that will enable the parties to bring closure to the current Roundup litigation in due course."
Bayer maintains that Roundup does not cause cancer. Baumann added: "Our company is grounded in the well-being of our customers. The extensive body of science indicates that Roundup does not cause cancer, and therefore, is not responsible for the illnesses alleged in this litigation. We stand strongly behind our glyphosate-based herbicides, which are among the most rigorously studied products of their kind, and four decades of science support their safety and that they are not carcinogenic."
In November 2017, the European Commission granted a fresh five-year licence for the glyphosate weedkiller's use in the European Union (EU). The decision was delayed by months, but finally the herbicide was granted a licence by the EU Commission's Standing Committee on Plants, Animals, Food and Feed. Of the 28 member states, 18 voted in favour, nine against and one abstained.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
