Glyphosate dispute in the USA: Bayer puts back billions more


Glyphosate dispute in the USA
Bayer is putting back billions more

In the US legal dispute over the allegedly carcinogenic weed killer Roundup, the German chemical company Bayer will set aside another 4.5 billion dollars – in the event that the highest court in the US decides on behalf of a sick plaintiff.

The chemical company Bayer has set aside 4.5 billion dollars (almost 3.8 billion euros) for future legal disputes in the dispute over the glyphosate-containing weed killer Roundup. “We want to make it clear to our investors that the risks of the glyphosate litigation are appropriately reflected in the balance sheet,” said Bayer CEO Werner Baumann in a conference call with investors.

The background to this is legal disputes in the USA. Bayer was sentenced there to ultimately $ 25 million in damages to a plaintiff suffering from cancer. Bayer plans to have this ruling reviewed by the Supreme Court in August. Should the US Supreme Court accept the case, Bayer expects a judgment in the course of 2022.

Group sees “good opportunities” in court

Bayer sees “good chances” for an “advantageous decision” by the Supreme Court, it said. However, the company is also preparing itself for the fact that the court will either not accept the case for hearing or that it will decide in the interests of the plaintiff. In this case, “possible long-term risks” should be mapped with the reserves, explained the company.

“It is important for our company, our owners and our customers that we can look ahead and leave the uncertainty of the glyphosate litigation behind us,” Baumann continued. The company pulled out of a program in May to reach a billion-dollar deal with tens of thousands of plaintiffs and instead developed a five-point plan to address future glyphosate legal risks.

The plan also includes the replacement of glyphosate-based products in the US consumer market with products with alternative active ingredients from 2023. The program also contains predefined compensations, the amount of which is based on current comparisons. Those affected should be able to contact the group directly, provided they have used Roundup and develop a corresponding clinical picture in the next 15 years.

Balance sheet suffers from litigation

Bayer brought the glyphosate lawsuits with the $ 63 billion takeover of Monsanto. So far, the group has lost three lawsuits in the first instance with millions in damages and has suffered defeats in two of the appeal proceedings. Again and again, the legal disputes ruin the balance sheet.

The Dax group had actually hoped to clear a large part of the glyphosate lawsuits with a billion dollar settlement from the world. But in May the judge in charge rejected a crucial part of the settlement. For the product liability litigation relating to glyphosate, Baumann previously expected total costs for proposed settlements of existing lawsuits of up to 9.6 billion US dollars. For regulations on future lawsuits, he reckoned with around two billion.

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