Bayer moves to cap Roundup liability with $7.25bn deal

Bayer has announced a $7.25bn (£5.4bn) settlement plan aimed at capping its exposure to tens of thousands of US lawsuits alleging its Roundup weedkiller causes cancer.

Filed on Tuesday in a Missouri state court by its Monsanto division, the proposed nationwide agreement would create a long-term claims programme funded through capped annual payments over up to 21 years.

The move is Bayer’s latest attempt to contain the legal fallout from its $63bn (£46.6bn) takeover of Monsanto in 2018, which has weighed heavily on investor confidence.

Roundup, one of the most widely used weedkillers in the United States, has been at the centre of litigation from plaintiffs who say they developed non-Hodgkin lymphoma and other cancers after exposure at work or at home.

Bayer estimates it faces around 65,000 claims across state and federal courts, but denies wrongdoing, insisting studies show glyphosate, the product’s active ingredient, is safe for human use.

The settlement would resolve most existing cases if approved by a judge and accepted by a minimum number of plaintiffs. Bayer would not be required to admit liability and could withdraw if participation is too low.

It is also intended to limit future lawsuits, allowing people diagnosed with non-Hodgkin lymphoma who can prove exposure before Tuesday to file claims for up to 21 years.

Compensation would be decided through a tiered system based on exposure and cancer type, with some individuals eligible for payouts of up to $198,000 (£147,000) or more.

Bayer has already paid around $10bn (£7.4bn) to settle most Roundup lawsuits pending as of 2020, but those deals did not cover future cases.

While it has won several trials, it has also faced major jury awards, including a $2.1bn (£1.6bn) verdict in Georgia in March, increasing pressure to secure a lasting resolution.