Bayer is proposing a $7.25 billion plan to settle thousands of lawsuits claiming its Roundup weedkiller caused cancer — a high-stakes effort to cap years of mounting legal exposure that will pressure the company’s finances in the near term.
“This is a choice for speed and containment over a protracted legal battle,” CEO Bill Anderson said Tuesday, describing the agreement as a pivotal step toward limiting long-running litigation tied to the herbicide.
Bayer said it is increasing its total litigation reserves to nearly $12 billion and expects about $6 billion in legal payouts in 2026 alone — enough to push free cash flow into negative territory this year.
TRUMP ADMINISTRATION BACKS BAYER AS ROUNDUP FIGHT MOVES TOWARD SUPREME COURT
“Under the proposed class settlement agreement, the largest of the annual payments would be funded this year,” CFO Wolfgang Nickl said. “Therefore, we are expecting a negative free cash flow in 2026.”
To finance the resolution, the company has secured an $8 billion loan facility.
The German pharmaceuticals and agriculture giant said its Monsanto unit filed a proposed nationwide class settlement in St. Louis that would create a long-term compensation program for people who say they developed non-Hodgkin lymphoma after using Roundup at home or on the job.
ESTÉE LAUDER SUES WALMART OVER ALLEGED COUNTERFEIT BEAUTY SALES
The plan would fund payouts through capped annual payments over as many as 21 years. People exposed to Roundup before mid-February 2026 who have already been diagnosed – or who receive a diagnosis within 16 years after court approval – could qualify. Payments would be determined by a tiered system based on exposure and medical factors, with some individuals potentially receiving up to about $198,000 or more.
Bayer is facing about 65,000 plaintiffs in U.S. courts. The deal requires a judge’s approval and enough participation from claimants. The company can walk away if too many opt out.
“We would anticipate that the vast majority – almost all – the plaintiffs will opt in,” Anderson said. “If it doesn’t work that way, then we don’t have a deal in the end.”
META CEO TO TESTIFY IN HIGH-STAKES TRIAL THAT COULD COST BIG TECH BILLIONS
It does not admit wrongdoing and maintains that regulators, including the EPA, have found glyphosate safe when used as directed.
Separately, the U.S. Supreme Court is set to hear a case that could limit future lawsuits by determining whether federal labeling law overrides state-level failure-to-warn claims – a decision that could reshape the company’s long-term legal risk.
“A decision in our favor would address cases not covered by the settlement, including significant adverse pending judgments,” Anderson said, adding that the high court review is critical to the company’s broader litigation containment strategy.
CLICK HERE TO GET FOX BUSINESS ON THE GO
For consumers and farmers, Roundup remains widely available. But for Bayer, the proposed settlement and the pending high court decision represent a pivotal effort to contain litigation costs and stabilize its balance sheet after years of uncertainty.
Read the full article here
