UNITED STATES
Bayer Announces Multi-Billion-Dollar Glyphosate, Dicamba Litigation Settlement
Bayer announced that a total payment of between $8.8 billion and $9.6 billion would be paid to “resolve current and address potential future Roundup litigation.”
B 14 | agairupdate.com
Bayer this month settled a multi-billion-dollar agreement, effectively ending the company’s cancer lawsuits related to Roundup, dicamba drift litigation, and polychlorinated biphenyls water litigation. In a press release, Bayer announced that a total payment of between $8.8 billion and $9.6 billion would be paid to “resolve current and address potential future Roundup litigation.” Stating that the settlement will “bring closure” to about 75% of Roundup litigation cases that cover approximately 125,000 claims, both current and pending in nature. The company further announced it would pay up to $400 million to cover litigation currently pending in the U.S. District Court for the Eastern District of Missouri. Those cases are centering on claims of crop damage related to Bayer’s dicamba herbicide product, XtendiMax. The final part of payouts detailed by the company includes a settlement of $650 million that will address litigation on PCBs (polychlorinated biphenyls) in water. Bayer detailed in the press release that “Cash payments related to the settlements are expected to start in 2020.” Further stating that the company assumes that potential cash outflow will not exceed $5 billion in 2020 and $5 billion in 2021, the remaining balance would be paid in 2022 or after.” “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 Bayer Chief Executive Officer Werner Baumann. “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.” Bayer stated in their press release that the company had considered the alternative of continuing to litigate cases. Eventually deciding that “In the company’s risk assessment, potential negative outcomes of further litigation, including more advertising and growing numbers of plaintiffs, upwards of 20 trials per year and uncertain jury outcomes and associated reputational and business impacts, likely would substantially exceed the settlement and related costs.” The settlement will not include outstanding cases still in litigation and the appeals process in California, which involve several cases with significant judgments against the company. A California jury awarded one plaintiff couple an award totaling over two billion dollars that is currently under appeal and several others where judgments were made. One totaling $80 million, another for $289 million that was reduced to $78 million on appeal. Bayer’s litigation concerning its dicamba herbicide, XtendiMax, where the company has agreed to pay $400 million will not include a judgment under appeal from a $325 million judgment awarded to the Bader Farm who were successful in a dicamba lawsuit, which the company vowed to continue to fight in its press release.
