Bayer AG (OTC:BAYRY) has reached agreements to resolve an estimated 125,000 U.S. cancer lawsuits over use of its Roundup weed killer.
The deal is part of a $10-billion U.S. plan by Bayer to end a costly legal battle the company inherited when it acquired Monsanto in 2018. Payouts for settled cases will range from a few million dollars to a few thousand each. Bayer is likely to announce the settlements, which need approval from its board, in June. Bayer shares gained 8.2% on Monday in Frankfurt trading.
Resolving the Roundup lawsuits has been a top priority for Chief Executive Officer Werner Baumann, who orchestrated the $63-billion U.S. Monsanto takeover. The surge of Roundup claims, along with three big U.S. court losses, hammered the company’s stock, wiping tens of billions of dollars from the market value.
Under terms of the deal, Roundup will continue to be sold in the U.S. for use in backyards and farms without any safety warnings.
