Bayer has announced a $7.25bn (£5.4bn) settlement plan aimed at limiting its exposure to tens of thousands of lawsuits in the US alleging that its herbicide Roundup causes cancer.
A proposed national agreement filed Tuesday in Missouri state court by a Monsanto Co. unit would create a long-term claims program funded through capped annual payments for up to 21 years.
The move is the latest attempt by Bayer to contain the legal fallout from its $63bn (£46.6bn) acquisition of Monsanto in 2018, weighing heavily on investor confidence.
Roundup, one of the most widely used herbicides in the United States, is at the center of a lawsuit brought by plaintiffs who say they developed non-Hodgkin’s lymphoma and other cancers from exposure to the herbicide at work and at home.
Bayer estimates it faces about 65,000 claims in state and federal courts, but denies wrongdoing, saying research shows the product’s active ingredient, glyphosate, is safe for human use.
The settlement, if approved by a judge and accepted by a minimum number of plaintiffs, would resolve most of the existing lawsuits. Bayer does not have to admit liability and could withdraw if the number of participants is too low.
It also aims to limit future lawsuits, giving people diagnosed with non-Hodgkin’s lymphoma who can prove they had the infection by Tuesday to file a lawsuit for up to 21 years.
Compensation will be determined on a tiered system based on exposure and type of cancer, with some individuals eligible for payments of up to $198,000 (£147,000) or more.
Bayer has already paid around $10bn (£7.4bn) to settle most of its outstanding Roundup cases as of 2020, but those deals did not cover future litigation.
Although it has won several cases, it has also faced significant jury verdicts, including a $2.1 billion (about £1.6 billion) verdict in Georgia in March, increasing pressure to find a permanent settlement.
