Bayer shares soar 11% after winning U.S. lawsuit over Roundup cancer case

Bayer shares soar 11% after winning U.S. lawsuit over Roundup cancer case

CHICAGO, ILLINOIS – MAY 14: Products containing the herbicide Roundup remain available at a local home improvement store, despite legal challenges. On May 14, 2019, the day after a jury ordered Monsanto, now owned by Bayer, to pay a California couple more than $2 billion in Roundup-related cancer claims, Bayer’s stock appreciated significantly. Since acquiring Monsanto, Bayer has seen its stock price drop 40% due to ongoing litigation.

Bayer shares rose sharply in early trading today after the company won a favorable verdict from a U.S. court over allegations that its widely used herbicide, Roundup, contributes to cancer.

By the close of trading in London at 3pm, Bayer shares had risen 11%.

The legal victory came after the U.S. Court of Appeals for the Third Circuit in Philadelphia ruled in favor of Bayer in a case brought by plaintiff David Schaffner, who argued that Monsanto’s failure to label Roundup as a potential carcinogen violated state law. Schaffner, who developed non-Hodgkin lymphoma in 2006, attributed his condition to his prolonged exposure to Roundup, both in his professional capacity as a landscaper and personally as a homeowner.

The committee, chaired by Chief Justice Michael Chagares, said federal law, specifically the Insecticide, Fungicide, and Rodenticide Act, requires consistency in state labeling laws, thus preventing the addition of cancer warnings to Roundup labels in Pennsylvania.

Schaffner’s attorney, Chip Becker, expressed disappointment with the decision, criticizing the federal regulations’ overriding of state law. He indicated that the Schaffners are exploring their legal options, Reuters reported.

Bayer continues to fight numerous lawsuits related to Roundup. According to Reuters, about 165,000 cases have been filed in the United States, with about 54,000 still pending as of August, after a $10.9 billion settlement in 2020.

Bayer stressed that the Philadelphia decision conflicts with rulings by other federal appeals courts, prompting the company to seek a hearing in the U.S. Supreme Court.

The company said: “The issue of federal preemption is central to this lawsuit and has led to a split in the district courts. We are preparing to present our case, which has been fully supported by the Third Circuit, to the U.S. Supreme Court to address this critical legal issue.” Bayer is also considering how this latest court ruling could affect other pending lawsuits.

By Lily Chang

You May Also Like