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 Bayer has been struggling to finalize the settlement of claims that
Roundup and other glyphosate-based herbicides cause non-Hodgkin's
lymphoma, a type of cancer. Bayer inherited the business and the
litigation as part of a $63 billion acquisition of Monsanto in 2018.
The company has said that decades of studies have shown Roundup and
glyphosate are safe for human use.
Wednesday's settlement would cover future claims brought by
individuals who have been diagnosed with non-Hodgkin's lymphoma and
were exposed to Roundup before their diagnosis. The settlement also
includes benefits for people who were exposed to Roundup and develop
the cancer in the future.
Roundup, which Monsanto first brought to the market in 1974, is
widely used by farmers across the United States and Brazil,
alongside crops that are genetically engineered to withstand the its
herbicidal effect.
Glyphosate will remain on the market. Bayer agreed to seek
permission from the U.S. Environmental Protection Agency to provide
a reference link on labels so consumers can find scientific studies
on the weedkiller.
Under the proposed plan, Bayer will provide $2 billion for a
four-year period as compensation and to cover outreach and
diagnostic assistance. Future claimants could receive up to $200,000
under the deal.
The parties can agree to extend the settlement period.
The company said the settlement amount was disclosed last year.
The agreement must be approved by U.S. District Court Judge Vince
Chhabria in San Francisco.
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 Chhabria in June questioned the
legality of a prior settlement plan that Bayer
proposed, which envisioned creating a panel of
scientists who would rule on the viability of
claims. Under the revised deal,
anyone who does not make a claim during the four-year period would
then be able to sue in court, according Elizabeth Cabraser, an
attorney for the proposed class. She also said anyone diagnosed with
non-Hodgkin's lymphoma who does not like their compensation offer
under the class plan can go to the court system and try for a better
result.
In June, Bayer reached a wider $9.6 billion settlement that would
resolve the bulk of the more than 100,000 U.S. lawsuits that were
already filed over Roundup.
Bayer's stock has been battered by the litigation, but also by
billions of euros in writedowns, and a bleaker profit outlook, in
large part related to the $63 billion Monsanto takeover.
The group last year announced 9.25 billion euros in impairment
charges on agricultural assets and shocked markets by predicting a
slight decline in core earnings per share in 2021 on weaker demand
by farmers.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Bill
Berkrot and Noeleen Walder)
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