Bayer Proposes $7.25bn Roundup Settlement
Bayer has offered to pay $7.25bn (£5.35bn) to settle thousands of lawsuits in the United States alleging that its Roundup weedkiller causes cancer, as the company seeks to bring long-running litigation to an end.
The proposed settlement targets claims linked to non-Hodgkin lymphoma and forms part of Bayer’s broader effort to draw a line under legal disputes stemming from its 2018 acquisition of Monsanto, the original maker of Roundup. Bayer has already spent about $10bn resolving earlier cases tied to the herbicide.
In a statement, the company said the latest proposal has the backing of several major plaintiffs’ groups but would still require approval from a US judge. Bayer has consistently maintained that Roundup is safe when used as directed.
Chief executive Bill Anderson said he expected most remaining claimants to opt into the agreement, adding that a comprehensive resolution was essential. “This doesn’t work unless there is closure,” he said.
Roundup, first developed in the 1970s, contains glyphosate as its active ingredient. In 2015, the International Agency for Research on Cancer, part of the World Health Organization, classified glyphosate as a probable human carcinogen. Bayer disputes that conclusion, as do some regulators, including the US Environmental Protection Agency.
Despite those assurances, Bayer has faced years of costly litigation after juries in several US states awarded large damages to plaintiffs who said exposure to Roundup contributed to their cancer diagnoses.
The company said it has resolved more than 130,000 claims so far, but around 65,000 cases remain outstanding, with the potential for additional lawsuits due to the long latency period associated with non-Hodgkin lymphoma.
Under the proposed deal, individuals exposed to Roundup before 17 February this year and diagnosed with the disease within 16 years would be eligible for compensation. Payments would be spread over 21 years, with most made within the first five.
Unlike a 2020 agreement, the new proposal is designed to cover both current and future claims related to non-Hodgkin lymphoma. Bayer also said it expects to spend a further $3bn on other Roundup-related litigation, including cases brought by US states concerning so-called “forever chemicals”.
The announcement comes as Bayer awaits a decision from the Supreme Court of the United States in a separate case that could shape the company’s legal exposure. That case centres on whether federal approval of Roundup pre-empts stricter state laws requiring warning labels.
Late last year, the Trump administration filed a brief supporting Bayer’s position, a move that lifted the company’s share price amid investor optimism over the outcome.
