By Jamie Martin
Bayer has put forward a nationwide settlement proposal totaling up to $7.25 billion to address thousands of lawsuits connected to its herbicide Roundup. The lawsuits allege that the company did not properly warn users about a possible link between Roundup and non-Hodgkin lymphoma.
The settlement is designed to resolve most remaining claims and cover future cases brought by people exposed to Roundup before the proposal date. Payments would be made into a compensation fund over a period of up to 21 years. The amount individuals receive would vary based on exposure level, age at diagnosis, and how severe their illness is.
According to the proposal, agricultural or turf workers with long term exposure and aggressive illness diagnosed before age 60 could receive an average of $165,000. Residential users diagnosed between ages 60 and 77 with less severe illness could receive around $20,000. Those diagnosed at 78 or older may receive approximately $10,000.
Bayer plans to finance the settlement using an $8 billion secured loan facility. The company has stated that if too many plaintiffs opt out, it reserves the right to withdraw the proposal.
At the same time, the U.S. Supreme Court will hear a case in April that could significantly affect future lawsuits. Bayer argues that because the Environmental Protection Agency approved Roundup’s label without a cancer warning, federal law should prevent additional state law claims.
“The proposed class settlement agreement, together with the Supreme Court case, provides an essential path out of the litigation uncertainty and enables us to devote our full attention to furthering the innovations that lie at the core of our mission: health for all, hunger for none,” said Bill Anderson, CEO of Bayer.
“This litigation and the resulting cost underscore the need for guidance from the Supreme Court on clear regulation in American agriculture,” said Anderson.
Although Bayer has already paid more than $10 billion in previous verdicts and settlements, it still faces roughly 67,000 active lawsuits. The Supreme Court’s decision will likely play a key role in shaping the company’s future legal exposure.
Photo Credit: gettyimages-d-keine
Categories: National