This was a momentous decision for Bayer AG, which was ordered to pay $2.1 billion after losing a major lawsuit over its weed killer Roundup. This decision issued in American state of Georgia. This decision joins an expanding and costly legal landscape where Bayer, who purchased Roundup’s original maker Monsanto in 2018, allegedly knew Roundup causes cancer. In 2018, Bayer acquired Monsanto for a jaw-dropping $63 billion. Since then, this agreement has resulted in Bayer paying out billions in lawsuit settlements. The outcome in Georgia, however, is a small fraction of the thousands of cases Bayer is still dealing with. These lawsuits are related to the potential health hazards posed by Roundup.
Roundup, which is based on glyphosate, an herbicide that advocates say is likely to be carcinogenic. Bayer continues to maintain its position that glyphosate is safe for consumers and farmers to use. This position is supported by the US Environmental Protection Agency and international regulators who have deemed glyphosate safe. Public outrage over Roundup isn’t going away, as protests and lawsuits make clear that health concerns aren’t abating.
Freed from paying exorbitantly for legal fees, Bayer has spent about $10 billion in cancer-related settlements connected to Roundup. The economic impact has been enormous and only increases over time. To settle potential litigation, $5.9 billion is set aside. The fiscal repercussions of this persistent litigation illustrate the growing peril Bayer has faced since purchasing Monsanto. This acquisition was supposed to save Bayer’s fortunes in the agricultural sector.
The fact is Roundup is used all over the country, most heavily on cotton, corn, and soybean acres. Bayer has delivered the message to US legislators loud and clear. The company is reportedly considering exiting the market for Roundup unless it secures more robust protections from litigation that claims the herbicide causes cancer. Yet, the company is operating in a complicated space where regulatory approvals face off against serious public safety backlashes.
William B O'Neil, CEO of O’Neil Strategic Solutions, shared his personal experience with Roundup:
“Like many others, I would strap a tank on my back and pump spray around the properties. No mask, no gloves. Now cancer. I was diagnosed with large b-cell non-Hodgkin's lymphoma.” – William B O’Neil
His testimony captures the feelings of many users who have had a good experience with Roundup for 40 years.
“The problem is, it was marketed as a safe and efficient chemical around the home," – William B O’Neil
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