Bayer AG is facing a substantial legal setback as it has been ordered to pay a staggering $2.25 billion in damages following a Roundup weedkiller trial. The verdict, delivered by a jury in the Philadelphia Court of Common Pleas, includes $250 million in compensatory damages and an unprecedented $2 billion in punitive damages.
The plaintiff, John McKivision, claimed that his non-Hodgkins lymphoma resulted from years of using Roundup for yard work. This decision is part of a series of recent wins by plaintiffs against Bayer, signaling a growing legal challenge for the multinational company.
McKivision's attorneys, Tom Kline and Jason Itkin, issued a joint statement, emphasizing, "The jury's punitive damages award sends a clear message that this multi-national corporation needs top to bottom change."
In response, Bayer expressed disagreement with the verdict, stating it conflicts with scientific evidence and global regulatory assessments. The company intends to appeal, aiming to overturn the decision and address what it considers an "unconstitutionally excessive damage award."
Despite previous reductions in damages awards, Bayer faces increasing legal challenges, raising questions about its legal strategy and prompting concerns among investors. The company insists on the safety of Roundup, attributing the recent losses to an unfavorable legal environment.
Roundup, one of the most widely used weedkillers in the United States, has been the subject of approximately 165,000 claims against Bayer. The company acquired Roundup as part of its $63 billion purchase of U.S. agrochemical company Monsanto in 2018.
While Bayer argues that decades of studies support the safety of Roundup and its active ingredient, glyphosate, the legal battles persist. Notably, Roundup sales for home use were phased out by Bayer last year, reflecting the evolving regulatory landscape.
In 2020, Bayer settled most pending Roundup cases for up to $9.6 billion, excluding future cases. However, over 50,000 claims remain unresolved, with more trials expected. The recent string of losses, totaling over $2 billion, has prompted Bayer to reassess its legal strategy.
Investors closely watch Bayer's actions, and the company's decision to continue legal battles indicates a commitment to defending its position. The legal saga poses challenges to Bayer's reputation and financial standing, prompting ongoing internal reorganization efforts.
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