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The company on Wednesday agreed to pay as much as $10.9 billion to
settle about 75% of the 125,000 filed and unfiled claims by Roundup
users who say the herbicide caused them to develop a form of blood
cancer.
But Bayer had to find a separate solution to mitigate the risk of
future claims without pulling the product off the shelves. The
company decided to make a calculated gamble on the scientific
evidence which so far has overwhelmingly supported its claim that
glyphosate, the active ingredient in Roundup, is safe for
agricultural use.
Regulators worldwide, including the U.S. Environmental Protection
Agency and the European Chemicals Agency, have determined glyphosate
to be non-carcinogenic.
But the World Health Organization's cancer research arm determined
the herbicide to be a "probable carcinogen" in 2015 and since 2018,
three consecutive U.S. juries, who listened to scientific evidence
from both sides during trial, found that Roundup causes cancer.
"Bayer is taking a huge risk by doing this and it's a bet that time
can show that the science underlying the plaintiffs' claims is bad,"
said David Noll, a law professor at Rutgers University.
While many details of the proposal have yet to be released by Bayer
and approved by a federal judge, the plan calls for an independent
panel of scientific experts, who will likely be chosen and agreed
upon by both sides.
The company will pay $1.25 billion to support the panel's research,
an amount that does not include any payouts to settle future
lawsuits.
The scientific review process is expected to take at least four
years, and findings by the panel would be binding on Bayer and
anyone who has used Roundup before Wednesday but not developed
cancer.
If the panel finds glyphosate to be non-carcinogenic, those users
could not sue.
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If the panel determines glyphosate causes cancer, however, Bayer could face a
flood of new lawsuits, with potential damages determined at a later stage. Bayer
on Wednesday said the lead plaintiffs' lawyers have agreed to its plans, but
Reuters was not immediately able to reach those attorneys for comment.
Lawyers for Roundup cancer claimants in the past have alleged that Bayer
manipulated scientific studies and deceived the scientific community, claims
Bayer denies.
Company executives on calls with reporters and analysts on Wednesday repeatedly
said the science was in their favor.
"We are confident that the science panel will look at the scientific body of
evidence and come to the conclusion that glyphosate is safe," said Bayer's
global head of litigation, Bill Dodero.
Scientific panels have been set up in previous mass torts but generally not as
part of a settlement process, legal experts said. Bayer's proposal was "creative
but risky" and will likely face procedural challenges in court, said Adam
Zimmerman, a professor at Loyola Law School.
The experts said many details, including how people who have not yet gotten sick
could give up their rights to a future lawsuit under the proposal, remained
unclear.
(Reporting by Tina Bellon; Editing by Cynthia Osterman)
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