On Wednesday, the Leverkusen-based German bioscience company, Bayer AG had issued a statement saying that after more than a year of talks the German biotech industry behemoth had agreed to pay up to $10.9 billion in liabilities to settle thousands of lawsuits filed against its Monsanto’s widely-used weedkiller Roundup over allegations that its glyphosate containing weedkiller could cause cancer, paving the way towards resolving tens of hundreds of lawsuits that had plummeted the company’s market valuation over the recent years.
In point of fact, the German pesticide and drugmaker, Bayer AG had also added on its statement that the Leverkusen-based German biopharmaceutical industry behemoth had come to terms with more than 75 per cent of roughly 125,000 lawsuits filed against its US-based Monsanto’s Roundup, adding that about 95 per cent cases which were set for trial on Roundup and other glyphosate-based weedkillers had already been settled.
Apart from that, a spokesperson for Bayer AG was also quoted saying that the company would pay off a total between $8.8 billion to $9.6 billion in order to settle the Roundup litigations, while the German pesticide maker had also set aside $1.25 billion to address potential future litigations.
Right action at the right time for Bayer, says Bayer CEO; uncertainties remain
Meanwhile, since the shares’ prices of Bayer AG had shown little response to the German biopharmaceutical’s Wednesday’s announcement and had faltered as much as 3.60 per cent to €69.99 in after-market trading after rising as much as 2 per cent in late-afternoon trading hours, over fears over other litigations that came up with the $63 billion purchase of the US-based Monsanto in 2018 alongside a new leg of EU-US row over added levies on EU-based products, expressing a cautiously optimistic tone over Bayer’s latest deal to put an end to the year-long legal disputes, a law professor at Loyola Law School, Adam Zimmerman said followed by the Bayer AG announcement, “Bayer is not getting complete relief, but trying to do as much as it can to calm uncertainty. I can see how it’s attractive for Bayer. ”