By Zarifa Huq
Bayer AG, the German drug and chemical giant is proposing paying $8 billion to settle Roundup cancer claims, the burden of which has fallen to them after their purchase of the product’s creator, Monsanto Co.
The settlement would pay out more than 18,000 U.S. lawsuits alleging RoundUp causes cancer. Though it would take months of negotiations, the settlement would alleviate investor pressures on the company, especially in lieu of its past trial losses that averaged payouts of nearly $50 million per plaintiff.
Bayer and the plaintiff's lawyers have asked for a postponement in the trials, marking a clear signal that talks are progressing. Bayer’s goal is to settle for under $10 million, though experts claim the payment may be as little as $2.5 billion and as large as $20 billion.
The allegations have knocked nearly $30 billion off of Bayer’s market value and continue to damage their reputation as well as setting a daunting precedent for any future settlement cases after sustaining so many trial losses.
Read the full report on Bloomberg.