Bayer, a German pharmaceutical and biotechnology group, is reportedly working on a plan to settle some of the mass lawsuits over its Roundup weedkiller in Missouri. The company may also consider seeking bankruptcy for its Monsanto unit if the settlement efforts do not succeed, according to sources cited by the Wall Street Journal.
The company has already paid around $10 billion to settle disputed claims that Roundup, which contains the herbicide glyphosate, can cause cancer. However, there are still about 67,000 pending cases for which Bayer has set aside $5.9 billion in legal provisions.
To navigate through these legal challenges, Bayer has enlisted the help of advisers from law firm Latham & Watkins and consultancy AlixPartners. The Journal reported that a potential Chapter 11 filing by Monsanto, a subsidiary of Bayer, could put a pause on lawsuits against the division and provide a pathway to resolving its portion of Roundup-related liability in bankruptcy court.
While Reuters could not immediately confirm the report, Bayer, Latham & Watkins, and AlixPartners have not responded to requests for comment.
In a recent move, Bayer petitioned the U.S. Supreme Court to limit claims linking Roundup to cancer in an effort to avoid facing potentially massive damages. The company anticipates a decision on this matter as early as next month.
Bayer acquired Roundup as part of its $63 billion acquisition of U.S. agrochemical firm Monsanto in 2018. Since then, the company has faced challenges with glyphosate litigations, setbacks in the development of its experimental medicines, weak agriculture markets, and pressure from investors to sell or separate certain businesses.
As the situation continues to unfold, Bayer remains focused on addressing the legal and financial implications of the Roundup lawsuits while also navigating other challenges in its business operations.
(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Arun Koyyur and Sherry Jacob-Phillips)
