On June 24th, Bayer AG announced that it had reached a series of agreements to resolve outstanding litigation.  Cases involved glyphosate product liability, damage from Dicamba™ drift and contamination of water with PCBs.

The agreement closes 75 percent of glyphosate claims and establishes a mechanism to resolve potential future claims.  Roundup® litigation will cost $8.8 to $9.6 billion with an additional $1.25 billion to support a separate class agreement for future litigation. 

Dicamba™ drift will cost Bayer $400 million and PCB water contamination $820 million. 

The spokesperson for a group of plaintiff attorneys stated, “It has been a long journey but we are pleased that we achieved justice for the tens of thousands of people who through no fault of their own are suffering from Non-Hodgkin lymphoma”.

Bayer acquired the glyphosate liability in 2018 after purchasing Monsanto for $63 billion. Werner Baumann, CEO of Bayer commented, “The Roundup™ settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end.”  He added, “It resolves most current claims and puts in place a clear mechanism to manage risks of potential future litigation.”

To reduce the liability side of the Bayer AG balance sheet, the Company has been selling non-core businesses including the Animal Health segment to Elanco Animal Health.

Werner Baumann contemplating his future?