Roundup claims cost Bayer $16b for settlement
Bayer will pay up to US$10 billion to settle thousands of claims in the US alleging the weedkiller Roundup causes cancer.
The settlement, which equates to NZ$16b, will cover 125,000 filed and unfiled claims, Bayer said.
As well as payment of up to US$9.6b to resolve current litigation, US$1.25b has been set aside for potential future claims.
Roundup’s active ingredient, glyphosate, is banned in several countries, with many others planning to introduce restrictions or bans.
It is still approved for use in New Zealand, where Roundup, made by Bayer subsidiary Monsanto, is the largest selling glyphosate-based weedkiller.
Following the settlement announcement, the company said it will continue to sell glyphosatebased weed sprays in Australia and fight litigation there against Roundup.
Executives from the company’s United States and Australian operations vigorously defended glyphosate weed sprays in a media call, saying the product was safe to use and backed by a large body of scientific evidence around the world.
Joerg Ellmanns, Bayer’s crop science country divisional head for Australia and New Zealand, said glyphosate weed sprays were a ‘‘cornerstone’’ of Australian agriculture, and the company had no plans to change its marketing of glyphosate products .
Ellmanns said sales of Bayer’s glyphosate weed sprays in Australia were performing strongly.
‘‘We believe it’s essential for Australian agriculture,’’ he said.
Shortly after Bayer bought Monsanto a California court awarded US$289 million to school groundskeeper Dewayne Johnson, who claimed that glyphosate caused his cancer. The monetary award was later reduced and Bayer appealed the verdict.
In Australia, the first class action launched against Bayer over Roundup was led by a Melbourne gardener, who blamed his non-Hodgkin lymphoma, diagnosed in 2011, on his use of Roundup. The case was launched last year.
New Zealand’s Environmental Protection Authority carried out a study on the scientific literature in 2016 and found glyphosate was ‘‘unlikely’’ to be carcinogenic, although the review was roundly criticised by public health officials and toxicologists.
Brett Begemann, chief operating officer at Bayer’s crop science division, said the company continues to ‘‘proudly stand behind’’ the safety of its products.
‘‘The decision to resolve these cases was driven by our desire to bring greater certainty to farmers we serve every day,’’ he said.
Begemann said the settlement came with a big expense, but was the ‘‘right decision’’ for Bayer and its stakeholders. The settlement would also enable Bayer to return its focus to work on the development of new agricultural products to protect crops.
Two class actions have already been launched against Roundup in Australia and are in their early stages.
Roundup is the biggest selling glyphosate-based weedspray in the world and is used extensively by farmers in various agricultural segments to kill weeds. It is also used by commercial gardeners and home gardeners.
Roundup is owned by Bayer, after the German company bought the US agrochemical company Monsanto in 2018. Monsanto invented and manufactured Roundup for decades, which meant that Bayer inherited the legal claims against Roundup with the 2018 deal.
‘‘Let me be clear that the settlement in the United States has no bearing on glyphosate proceedings in any other jurisdiction. Bayer will actively defend any and all claims concerning Roundup brought against it in Australian courts . . . we’re fully committed to these crucial weed control technologies and that commitment’s unwavering,’’ Begemann said.
The coronavirus pandemic was a key reminder of the importance of agriculture, food and science to the world, he said.
‘‘We’ll continue to sell Roundup and other glyphosatebased products to our loyal customer base,’’ he said.
– Additional reporting Sydney Morning Herald
It is still approved for use in New Zealand, where Roundup . . . is the largest selling glyphosate-based weedkiller.