"The German drug giant and crop science company had originally reached a $10 billion settlement in 2020 that covered short-term claims up to four years - but that deal was later scuttled amid legal scrutiny over the claims process. The new compensation deal covers claims for up to 21 years. The company didn't disclose the average amount expected to be distributed to each recipient."
"The latest deal comes as Bayer awaits a Supreme Court ruling that CEO Bill Anderson has said could determine whether Roundup stays on the market in the U.S. Anderson told Axios in May that the ruling was critical because the company was facing "crazy regulatory ambiguity" stemming from a dispute between federal and state laws governing the product."
"The new settlement terms "are highly favorable to Bayer and serve as a hedge against the downside risk in the unlikely event of an unfavorable Supreme Court ruling," Capstone analyst Walker Livingston wrote Tuesday in a research note. Livingston said it's 80% likely the company will prevail in the case. "A positive ruling on the question before the Supreme Court should largely foreclose present and future claims based on state label-based warning theories," Bayer said in a statement, adding that the settlement will resolve claims "regardless of legal theory.""
Bayer finalized a new Roundup compensation agreement that extends covered claims to 21 years, replacing a previously scuttled $10 billion deal from 2020 that covered up to four years. The earlier settlement collapsed amid legal scrutiny over the claims process. The company did not disclose the average payout per recipient. Bayer awaits a Supreme Court decision that CEO Bill Anderson warned could determine whether Roundup remains on the U.S. market, citing regulatory ambiguity between federal and state laws. Analysts view the settlement as favorable to Bayer and a hedge against an adverse ruling; the stock rose 6% on the news.
Read at Axios
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