Bayer AG, manufacturers of Roundup weed and grass killer, has announced it will seek reduced payment amounts in the Roundup settlement talks because of lagging revenues due to the novel coronavirus. Bloomberg reports that Bayer may try to reduce potential compensation by as much as 20 percent.

Roundup settlement talks have been stalled due to social distancing measures and court closures.

“Covid-19 dynamics, including restrictions imposed in recent weeks, have caused meeting cancellations and delayed this process,” Bayer spokesman Chris Loder said in an emailed statement.

According to Loder, Bayer can’t estimate potential outcomes or timelines because of uncertainty surrounding the pandemic. However, Bayer has considerable reasons to want to reach a conclusion in the Roundup settlement talks. The company has faced a litany of Roundup cancer lawsuits and, according to Reuters, has lost three consecutive jury trials in which the plaintiffs were each awarded tens of millions of dollars.

In June 2018, Bayer purchased Monsanto, the company that manufactures Roundup and many other chemical products. Soon after, Bayer shares lost nearly half their value as trials against the company piled up. Reaching a conclusion in the Roundup settlement talks is the best way for Bayer to recover some of that lost value given the fact that share prices started to rise again when settlements seemed close. 

Bayer also has considerable reasons to want to settle these claims out of court. The company’s shares took another dive after losing its first cases, and they no doubt want to avoid a repeat of those losses.

Roundup Cancer Lawsuits

According to Bloomberg, Bayer put at least a half-dozen trials on hold after losing three cancer trials in California that led the company to pay combined damages totaling $191 million. Bayer continues to claim that its product does not cause cancer, but it is currently facing 45,000 claims alleging that exposure to the company’s glyphosate-based weedkiller, Roundup, caused them to develop non-Hodgkin’s lymphoma.

Bayer has also faced lawsuits for false advertising. Bloomberg reports that the company agreed to pay nearly $40 million to settle claims that the company had misrepresented the risks of using its product. The labeling previously implied that it only affected plants, but as a part of the settlement, Bayer must adjust the labeling to more accurately reflect the harm Roundup can do to humans and animals.

Roundup Settlement Talks 

Legal and financial experts estimate that the Roundup settlement talks could result in more than $10 billion in damages being paid to claimants. Draft settlement terms were agreed to in mid-March.

However, Bayer says that previous offers were made before the company knew its revenue would be affected by the virus. Now the company is attempting to renegotiate the settlement by as much as 20 percent, according to Bloomberg.

Stalls created by the virus give Bayer more time to try to get total settlement amounts below the $10 billion mark. Roundup settlement talks haven’t reached a conclusion and “could yet fall apart,” according to Reuters.

“Mediation discussions continue in good faith under a court order requiring confidentiality and the company cannot comment on speculation about outcomes, timing or progress,” a Bayer spokesman told Reuters.

If you or a loved one developed cancer after using Roundup as a farm worker or home gardener, you may have a legal claim. Legal migrant farm workers may also seek help. Learn more by filling out the form on this page for a FREE case evaluation.

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