"Bayer Discusses Settling Roundup Claims for $10 Billion"

"In an effort to settle tens of thousands of claims that Bayer AG’s Roundup weedkiller causes cancer, lawyers for some plaintiffs are discussing with the company deals that could lead to a total payout of about $10 billion, according to people with direct knowledge of the negotiations.

In some discussions, Bayer’s lawyers have said the chemical maker will set aside $8 billion to resolve current cases and reserve $2 billion for future claims, the five people said. Roundup has been blamed for ailments including non-Hodgkin’s lymphoma, which can take years to diagnose. Bayer declined to comment on the numbers or any terms under negotiation.

Bayer shares rose as much as 3.9% Friday in Frankfurt, the most since October. They’re still down about 23% since the company acquired agricultural giant Monsanto Co. for $63 billion, giving it Roundup. The collapse has wiped about $18 billion off Bayer’s market value."

Jef Feeley and Tim Loh report for Bloomberg January 23, 2020.

Source: Bloomberg, 01/24/2020