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Bayer plant in Bitterfeld-Wolfen: compromise reached
Photo: Hendrik Schmidt / dpa
After much back and forth, Bayer has reached a compromise on a crucial part of its multi-billion dollar glyphosate settlement with US plaintiffs.
The Leverkusen-based pharmaceutical and agrochemical company announced on Wednesday evening a breakthrough in the negotiations to deal with future US lawsuits due to alleged cancer risks of the glyphosate-containing weed killer Roundup.
A formal agreement had been reached with the plaintiff's attorneys, which also included a commitment of up to the equivalent of 1.7 billion euros.
Bayer had already put the money aside last year.
The Dax group dealt with the legal conflicts over glyphosate with the billion-dollar takeover of the US seed giant Monsanto in 2018.
Last June, the lawyers actually put together a large settlement package with numerous US plaintiffs, which was later rejected by the responsible US judge on one important point.
Suddenly the whole deal to settle the proceedings was in jeopardy again.
Bayer and the plaintiffs' attorneys have now revised this part of the settlement and re-submitted it to Federal Judge Vince Chhabria for approval.
Numerous US proceedings are bundled with him.
Comparative package worth $ 11.6 billion
Should the judge approve the new proposals of the parties to the dispute, Bayer could probably finally tick off most of the US legal disputes that had come on board with the approximately 63 billion dollar acquisition of Monsanto.
An expensive matter: The settlement package would cost Leverkusen around $ 11.6 billion - including up to $ 9.6 billion for existing lawsuits.
Nonetheless, the prospect of an approaching end of the case was well received by investors.
The price of Bayer shares initially rose by a good two percent in late Frankfurt business.
Chhabria was particularly disturbed by the group's proposal to set up an independent scientific committee to deal with future glyphosate lawsuits.
The judge questioned the legality of such a solution and classified it as a disadvantage for possible future plaintiffs.
Bayer had repeatedly emphasized how important this piece of the comparison puzzle was for the overall deal to come about.
The group is now confident that it has dispelled Chhabria's objections.
"With the revised agreement, the parties have conscientiously responded to the questions that the court had previously raised," Bayer said.
Part of the agreement is, for example, a fund from which future plaintiffs in question will initially receive compensation payments over the next four years.
In addition, the scientific advisory body should only act in an advisory capacity and its findings flow into future court proceedings with plaintiffs in this group as evidence.
In addition, a comprehensive program is planned to inform future plaintiffs of the settlement.
Certain research and diagnostic programs that were part of the original agreement were also retained.
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mik / dpa
