Shares of Bayer AG, a German multinational pharmaceuticals and life science company, headquartered in Leverkusen, nosedived as much as 5 percent on Tuesday, the 14th of May 2019, after a CA couple had been awarded over $2 billion on Monday (May 13th) as punitive damage over allegations that Bayer’s Roundup week killer caused cancer.
Never the less, the latest Jury penalty has been the largest ever in US history on any pharmaceuticals over potential health concerns. Although the awarded disciplinary-damage would likely to be reduced according to a US Supreme Court hearing that limit the ratio of punitive to compensatory damages to 9/1, share prices of Bayer AG had fiercely tumbled following the court hearing and rounded off the day closer to its lowest levels in almost seven years ahead of a stack of lawsuits on similar issue across the world.
Concluding that Bayer’s Roundup week killer, prepared on herbicide glyphosate, was defectively designed and the company was failed to warn about its cancer-causing risk, the US jury had set the total punitive damage to $2 billion and added another $55 million as compensation.
After falling as much as 5 percent during the intraday trading, the share of Bayer AG had closed the 2.13 percent lower at 55.33 euros per share. Nevertheless, following the hearing, Bayer had been quoted saying in a statement on Monday (May 13th) that it was bitterly disappointed with the outcome of the hearing and it would appeal, while a Bayer spokesman had labelled the jury’s decision as “excessive and unjustifiable”.