Agriculture and Chemical Safety

Bayer said Tuesday it has agreed to a $7.25 billion settlement to resolve tens of thousands of U.S. lawsuits alleging that Monsanto’s Roundup weedkiller caused non‑Hodgkin lymphoma, replacing an earlier $10 billion deal that was scrapped under legal scrutiny. The new program will compensate claimants alleging Roundup‑linked NHL for up to 21 years, though the company did not say what average payouts might look like. The deal comes as Bayer awaits a critical U.S. Supreme Court ruling on whether federal pesticide labeling rules preempt state‑law failure‑to‑warn claims, a case CEO Bill Anderson has said could determine whether Roundup remains on the U.S. market. Analysts note that the prospect of a pro‑Bayer ruling appears to have strengthened the company’s hand, with one research note calling the terms 'highly favorable' and estimating an 80% chance Bayer prevails at the Court. Bayer’s shares rose about 6% on the news, as investors bet that the settlement and a possible Supreme Court win would cap future Roundup liabilities and protect a key product line for U.S. agriculture and lawn‑and‑garden markets.

Bayer said Tuesday that its Monsanto unit has proposed a $7.25 billion settlement to resolve remaining lawsuits alleging the Roundup weedkiller caused non-Hodgkin lymphoma, with payments to be made annually over as long as 21 years if courts approve the deal. People diagnosed with non-Hodgkin lymphoma after Roundup exposure occurring before the proposal date would be able to file claims under the program, which comes on top of additional, undisclosed Roundup-related settlements worth about $3 billion. Bayer said it is not admitting liability or wrongdoing, but the new agreements will boost its total Roundup litigation liability from €7.8 billion to €11.8 billion (about $13.9 billion). The company has faced tens of thousands of U.S. claims since acquiring Monsanto in 2018 and previously committed up to $10.9 billion to settle some 125,000 filed and unfiled cases, even as juries have continued to return large verdicts, including a $332 million award to a California man in 2023. Roundup remains on sale through major U.S. retailers, and Bayer maintains that the product is safe and thoroughly tested, a stance that continues to clash with plaintiffs’ lawyers, environmental groups and many scientists who argue the company understated cancer risks.