Bayer said on Tuesday its Monsanto unit had filed a proposed U.S. class settlement totalling as much as $7.25 billion (C$9.89 billion) aimed at resolving all current and future claims that its Roundup weedkiller caused cancer.
The German company said the proposed nationwide settlement, expected to be filed on Tuesday in state court in St. Louis, Missouri, would establish a long-term claims program funded by capped annual payments over up to 21 years.
The company, which acquired Roundup as part of its purchase of agrochemical company Monsanto in 2018, is facing claims over Roundup from approximately 65,000 plaintiffs in U.S. state and federal courts.
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The plaintiffs say they developed non-Hodgkin lymphoma and other forms of cancer due to using the weedkiller, either at home or on the job.
Proposed settlement aimed at heading off future lawsuits
The proposed settlement covers the bulk of the lawsuits, but will need a judge’s approval.
It is also designed to head off future lawsuits, and includes a provision that allows people who can prove they have been diagnosed with non-Hodgkin lymphoma and were exposed to Roundup prior to Tuesday to file claims to receive a portion of the settlement for up to 21 years.
Bayer CEO Bill Anderson said on a call with investors and reporters that he is confident the proposed class action settlement will resolve the vast majority of the claims, although he declined to say how many people currently support the deal.
The company said it had separately reached confidential settlements to resolve other Roundup cases with specific law firms, although the company would not name the firms or specify the amount of those deals.
Company paid out US$10 billion to settle previous suits
Roundup is among the most widely used weedkillers in the United States. Bayer has said decades of studies have shown Roundup and its active ingredient, glyphosate, are safe for human use.
The company had previously paid about $10 billion (C$13.6 billion) to settle most of the Roundup lawsuits that were pending as of 2020, but failed to get a settlement then covering future cases.
It has had a mixed record with cases that have gone to trial. It prevailed in a series of Roundup trials, but has been hit with large jury awards in the past few years, including a $2.1 billion (C$2.86 billion) verdict in a case in the U.S. state of Georgia in March.
The verdicts shattered both investor confidence and company hopes that the worst of the Roundup litigation was over, and put pressure on Bayer to find a comprehensive solution to the lawsuits.
Supreme Court to hear appeal
Tuesday’s proposed settlement comes after the U.S. Supreme Court agreed to hear an appeal in a case that Bayer argues will sharply limit its liability in the litigation.
The company said the Supreme Court case, scheduled for oral arguments at the end of April, remains essential to resolving the Roundup litigation.
A favorable ruling would wipe out several large verdicts that remain on appeal and would also prevent future claims from individuals who choose to opt out of the nationwide settlement.
Bayer expects its provisions and litigation liabilities to rise from 7.8 billion euros (C$12.6 billion) to 11.8 billion euros. It anticipates around 5 billion euros in litigation-related payouts in 2026, and now expects negative free cash flow for the year.
The company has postponed publication of its 2025 results and 2026 guidance to March 4 to reflect the agreements.
— Reporting by Diana Novak Jones and Kirsti Knolle; Additional reporting by Dietrich Knauth
