Agrochemical company Bayer, alongside lawyers for cancer patients, revealed a proposed $7.25 billion settlement on Tuesday aimed at resolving numerous lawsuits in the United States. These lawsuits claim that Bayer did not adequately warn consumers that its widely used weedkiller, Roundup, could potentially cause cancer.
This settlement proposal comes at a time when the U.S. Supreme Court is preparing to hear a case in April concerning Bayer’s argument. Bayer asserts that since the U.S. Environmental Protection Agency approved Roundup without a cancer warning, this should nullify state court claims. Notably, this case will not be impacted by the proposed settlement.
The settlement offers a degree of protection against potential outcomes from the Supreme Court. It ensures that patients will receive settlement funds even if the court sides with Bayer, while also shielding Bayer from possibly higher costs if the ruling is unfavorable.
Headquartered in Germany, Bayer acquired Monsanto, the original maker of Roundup, in 2018. Bayer disputes the claim that glyphosate, Roundup’s active ingredient, causes non-Hodgkin lymphoma. However, the company has indicated that the growing legal expenses are affecting its ability to continue selling Roundup in U.S. agricultural markets.
Bayer CEO Bill Anderson stated, “Litigation uncertainly has plagued the company for years, and this settlement gives the company a road to closure.” The settlement has been submitted for approval to the St. Louis Circuit Court in Missouri, where many of the lawsuits have been filed.
Settlement Payouts to Vary
Approximately 200,000 claims related to Roundup have been filed against Bayer, including over 125,000 plaintiffs who initiated lawsuits since 2015. Out of these, a small number of cases have gone to jury trials, with 13 verdicts favoring Bayer and 11 supporting the plaintiffs. A notable case resulted in a $2.1 billion award by a Georgia jury last year.
The newly proposed national settlement aims to resolve most outstanding lawsuits and any future claims by individuals exposed to Roundup before the settlement date. Bayer retains the right to withdraw from the settlement if too many plaintiffs choose not to participate, though the threshold for opt-outs has not been specified.
The agreement stipulates that Bayer will make annual deposits into a designated fund over a span of up to 21 years, potentially reaching $7.25 billion. Individual payouts will depend on factors such as the method of Roundup use, the age at non-Hodgkin lymphoma diagnosis, and the illness’s severity.
For instance, an agricultural worker diagnosed under the age of 60 with an aggressive form of the illness could receive around $165,000. In contrast, a residential user diagnosed with a less severe form of the illness between the ages of 60 and 77 could receive approximately $20,000, and those diagnosed at age 78 or older might receive $10,000.
Attorney Christopher Seeger, representing current claimants, remarked, “No settlement can erase a diagnosis, but this agreement is designed to ensure that both today’s and tomorrow’s patients have access to meaningful compensation.” However, attorney Matt Clement, representing about 280 plaintiffs, expressed skepticism about the settlement, suggesting many of his clients may opt out due to perceived insufficient compensation.
Bayer Receives Support from Trump Administration
Due to ongoing litigation, Bayer has already ceased using glyphosate in Roundup for U.S. residential markets, although it remains in agricultural products. Glyphosate is intended for use with genetically modified seeds, allowing enhanced crop production while reducing soil tillage.
Although some studies suggest a link between glyphosate and cancer, the EPA maintains that it is unlikely to be carcinogenic when used as directed. Consequently, Roundup labels carry no cancer warnings.
Bayer argues that federal pesticide regulations preclude states from imposing additional labeling, thus invalidating state-level failure-to-warn lawsuits. This argument is central to Bayer’s Supreme Court appeal concerning a Missouri case where $1.25 million was awarded to a man who developed non-Hodgkin lymphoma after using Roundup in a community garden.
The Trump administration has expressed support for Bayer’s position, reversing the stance of the previous Biden administration. This support contrasts with some advocates of the “Make America Healthy Again” initiative, who oppose granting legal immunity to the company.
Additionally, Bayer has been lobbying state legislatures to protect pesticide manufacturers from state-level failure-to-warn lawsuits when federal labeling guidelines are followed. North Dakota was the first state to pass such a law in April, followed by Georgia in May.
