Bayer agrees to pay $7.25B to settle cancer lawsuits in US

By Bahattin Gonultas

BERLIN (AA) - Bayer announced it will pay $7.25 billion to settle thousands of US lawsuits concerning its Roundup weedkiller that allegedly caused cancer, according to a statement.

The deal announced Tuesday aims to end years of legal uncertainties due to the German pharmaceutical company’s acquisition of US agrochemical firm Monsanto in 2018.

Bayer will deliver the payments over 21 years to protect its financial stability, according to the proposal sent to the St. Louis District Court.

The settlement will cover those exposed to Roundup before Feb. 17, 2026, who have been diagnosed with lymphoma or will be potentially diagnosed within the next 16 years.

Individual compensation is calculated based on factors like age and exposure. Payouts are expected to be as high as $198,000 or more per case.

Bill Anderson, CEO of Bayer, said the move is an investment in the company’s future, rather than an admission of liability.

Bayer shares dropped as much as 12% Wednesday, wiping away all of the gains from the previous day.

While the settlement hedges future risk, the upcoming US Supreme Court case remains a critical turning point for Bayer.

The pharmaceutical company argues that the US Environmental Protection Agency (EPA) has yet to classify glyphosate as carcinogenic, claiming state laws should not override federal regulations.

A ruling in Bayer’s favor could ease some of the legal pressure already on the company.

The firm originally acquired Monsanto for $63 billion and it also took on the massive wave of lawsuits it faced.

Bayer increased its total provisions to €11.8 billion ($13.8 billion), $11.3 billion of which will be used for glyphosate cases, while the firm expects paying out around $5.9 billion to claimants this year alone.

It established an $8 billion credit line to fund the deal, with financing secured via bond issuances rather than capital increases.

The package will also be used to address other liabilities related to PCB chemicals, one of the many issues stemming from the Monsanto acquisition.

Bayer has recently postponed its annual news conference to March 4 to update its financial statements.

*Writing by Emir Yildirim in Istanbul