$10B Roundup settlement studied
In an effort to settle tens of thousands of claims that Bayer AG’s Roundup weedkiller causes cancer, lawyers for some plaintiffs are discussing with the company deals that could lead to a total payout of about $10 billion, according to people with direct knowledge of the negotiations.
In some discussions, Bayer’s lawyers have said the chemicalmaker will set aside $8 billion to resolve current cases and reserve $2 billion for future claims, the five people said. Roundup has been blamed for ailments including non-Hodgkin lymphoma, which can take years to be diagnosed. Bayer declined to comment on the numbers or any terms under negotiation.
The $10 billion figure isn’t final and could change as talks continue, said the people, who asked not to be identified because they weren’t authorized to speak publicly about the discussions.
Ken Feinberg, the lead mediator for the cases, has indicated deals resolving as many as 85,000 Roundup claims in the U.S. may be reached within a month. Feinberg said he’s unaware of the numbers being discussed in settlement talks. The talks are taking place between company lawyers and separate groups of plaintiffs’ attorneys, each with a sizable inventory of cases.
While Feinberg said in an email he remains optimistic, “any details about what may constitute a comprehensive agreement are pure speculation as to both dollars and eligibility criteria.”
“The mediation process is continuing diligently and in good faith to explore resolution under the auspices of Ken Feinberg,” said Chris Loder, a U.S.-based spokesman for Germany’s Bayer. “There is also no certainty or timetable for a comprehensive resolution.”
Roundup claims have surged since a trio of jury verdicts awarded plaintiffs almost $2.5 billion, increasing pressure on Bayer to settle. While several trials due to start this month have been postponed to give more time for negotiations, cases in Missouri and California got underway this week. Bayer is appealing the earlier verdicts, which judges have already slashed to $191 million.
Analyst estimates vary on how much a deal could cost. Bloomberg Intelligence analyst Holly Froum said last month that it could take $10 billion to $12 billion. Thomas Claps, a litigation analyst with Susquehanna Financial Group, forecast $4.5 billion to $6.5 billion.