US Supreme Court Favors Bayer in Roundup Cancer Lawsuits
The Supreme Court's Ruling on Roundup Lawsuits
The United States Supreme Court has sided with the maker of Roundup weedkiller in a ruling expected to block thousands of lawsuits alleging it failed to warn people the product could cause cancer.
Details of the Case and Ruling
The ruling on Thursday was tied to a case that came before the justices after a tidal wave of litigation that included some multibillion-dollar verdicts against the global agrochemical manufacturer Bayer, a Germany-based company that acquired Roundup when it bought its original producer Monsanto in 2018.
The high court, in a 7-2 ruling, found that the company cannot face failure-to-warn lawsuits in state courts because federal regulations have found a cancer link unlikely and do not require a warning label.
Financial Impact of the Decision
- Bayer shares jumped nearly 18 percent following the ruling.
- The company had faced over 100,000 plaintiffs filing cases in US state and federal courts alleging a cancer link.
- Bayer had proposed a $7.25bn settlement to resolve tens of thousands of current and future lawsuits.
Implications for Bayer and the Industry
The decision is a victory for US President Donald Trump’s administration, but one that could be tricky politically since allies in the “Make America Healthy Again” movement want to rein in pesticide use.
Bayer acquired Roundup as part of its $63bn purchase of agrochemical company Monsanto in 2018.
Future Outlook for Roundup Litigation
“The US Supreme Court decision is good for science, farmers, and industries that depend on regulatory clarity for innovation. It should help significantly contain the Roundup litigation after nearly a decade of legal battles. The ruling should result in the dismissal of current warning-based claims and bar future failure-to-warn claims,” Bayer spokesperson Tino Andresen said in a statement.