Bayer seeks Roundup settlement, explores Monsanto bankruptcy, WSJ reports
Bayer, a German pharmaceutical and biotechnology group, is currently devising a plan to settle a portion of the mass lawsuits it faces over its Roundup weedkiller in Missouri. According to sources cited by the Wall Street Journal, if this effort proves unsuccessful, Bayer may consider seeking bankruptcy for its Monsanto unit.
The company has already shelled out approximately $10 billion to resolve disputed claims that Roundup, which contains the herbicide glyphosate, can cause cancer. Despite this hefty sum, there are still around 67,000 additional cases pending, for which Bayer has allocated $5.9 billion in legal provisions.
To navigate this challenging situation, Bayer has enlisted the help of advisors from the law firm Latham & Watkins and consultancy AlixPartners to explore potential solutions. The Journal reports that filing for Chapter 11 bankruptcy for its Monsanto division could halt the lawsuits against the unit and pave the way for resolving its portion of the Roundup-related liability in bankruptcy court.
While Reuters was unable to immediately verify this information, Bayer, Latham & Watkins, and AlixPartners did not respond to requests for comment.
In a separate move, Bayer recently appealed to the U.S. Supreme Court to limit claims linking Roundup to cancer in an effort to avoid facing significant financial damages. A decision on this matter is expected as early as next month.
Bayer acquired Roundup through its acquisition of U.S. agrochemical company Monsanto for $63 billion in 2018. Since then, the company has grappled with legal battles over glyphosate, setbacks in the development of its key experimental medicine, challenges in the agriculture sector, and pressure from investors to divest certain businesses.
As this situation continues to unfold, it remains to be seen how Bayer will navigate the complexities of its legal and financial challenges. Stay tuned for further updates on this evolving story.
[Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Arun Koyyur and Sherry Jacob-Phillips]
