Bayer is to pay up to $10.9 billion (£8.8bn) to resolve current and address potential future cancer claims linked to its glyphosate-based Roundup weedkiller.
The chemical firm said the move would 'bring closure to approximately 75%' of the current Roundup litigation.
This involves approximately 125,000 filed and unfiled claims overall, Bayer said in a statement.
As part of the settlement, the German multinational company will pay $9.6bn to resolve outstanding claims and set aside $1.25bn to deal with any future action.
Werner Baumann, CEO said: “First and foremost, the settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end.
“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.
“Unfortunately, we have to pay an awful lot of money for a product which is perfectly regulated.”
Mr Baumann said the decision to resolve the Roundup litigation would enable the firm 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,” he said.
Bayer said it would start making payments this year.
Bayer acquired Monsanto in 2018 for about $63 billion in 2018. In doing so, it inherited a mass of lawsuits alleging that the main active ingredient in Roundup, glyphosate, gave people cancer.