In a sweeping legal maneuver years in the making, Bayer has unveiled a proposed settlement worth up to $7.25 billion aimed at corralling tens of thousands of lawsuits tied to its weedkiller, Roundup. The agreement, filed in a Missouri state court, seeks to draw a thick line under both existing claims and those that may surface in the future.
At the heart of the storm is Roundup, the widely used herbicide absorbed into Bayer’s portfolio through its $63 billion acquisition of Monsanto in 2018. That deal, once pitched as transformative, instead saddled the German conglomerate with relentless litigation over allegations that the product causes non-Hodgkin lymphoma and other cancers.
A 21-Year Framework
The proposed arrangement would establish a long-term compensation program funded through capped annual payments stretching up to 21 years. Roughly 65,000 plaintiffs currently have claims pending across U.S. courts. The new plan is designed not just to address them, but to head off the next wave.
Claimants diagnosed with non-Hodgkin lymphoma who can demonstrate prior exposure to Roundup would be eligible to seek compensation under a tiered system. Factors such as age at diagnosis, extent of exposure, and cancer type would shape individual payouts. Some awards could reach $198,000 or more.
Importantly, the settlement does not require Bayer to admit fault. It also hinges on judicial approval and sufficient participation from plaintiffs; if too many decline, Bayer retains the option to withdraw.
Financial Impact: A Heavy Price Tag
The cost is formidable. Bayer expects its litigation provisions to climb from €7.8 billion to €11.8 billion. Around €5 billion in payouts are projected for 2026 alone, pushing the company toward negative free cash flow next year.
Markets, however, reacted with cautious optimism. Shares surged to their highest level since September 2023 following the announcement, signaling investor relief that a long-festering liability may finally be contained.
The Supreme Court Wildcard
Parallel to the settlement push, Bayer is preparing for a high-stakes hearing before the Supreme Court of the United States later this year. The company argues that federal law shields it from state-law failure-to-warn claims because the U.S. Environmental Protection Agency has found no cancer risk linked to glyphosate and does not mandate a warning label.
If the court sides with Bayer, it could significantly narrow the path for future lawsuits. If not, the company may face renewed legal headwinds despite the proposed settlement.
A Long Legal Shadow
This is not Bayer’s first attempt to bring closure. It previously spent roughly $10 billion to resolve most pending cases as of 2020. That effort did not secure protection against future claims — a gap the current proposal aims to fill.
Courtroom outcomes have been uneven. Bayer has notched defense wins in some trials but has also faced eye-watering jury verdicts, including a $2.1 billion award in Georgia last year. Those rulings rattled investor confidence and reignited pressure on leadership to craft a more durable solution.
Now, the pharmaceutical and chemicals giant is wagering billions that this structured settlement — combined with a favorable ruling from the nation’s highest court — will finally steady the ground beneath it.
Whether this becomes the closing chapter of the Roundup saga or merely an intermission depends on two things: judicial approval and the Supreme Court’s word.
