With the takeover of Monsanto, Bayer has brought enormous legal risks – mainly because of the weed killer glyphosate. The Leverkusen hoped for a liberation before the Supreme Court.
The Bayer Group has failed in a groundbreaking legal dispute over alleged cancer risks of the weed killer glyphosate with an appeal to the US Supreme Court.
In Washington, the US Supreme Court announced that it would not be dealing with the case, which would set the course for many other US proceedings. For Bayer, this is dying – at least initially – of the hope of a liberation in the ongoing conflict over legacy legal issues that the agrochemical and pharmaceutical company had brought on with the $60 billion purchase of US seed giant Monsanto in 2018.
Specifically, the application to the Supreme Court was about reviewing a judgment in favor of the plaintiff Edwin Hardeman, who blamed Monsanto products containing glyphosate for his cancer. In 2019, after a court case, he was ultimately awarded a good $25 million in damages. Bayer vehemently denies that glyphosate causes cancer. The company argues with the approval of regulators and studies designed to show that weed killers like Monsanto’s controversial Roundup are safe when used as directed.
Legal risks worth billions
Bayer had placed great hopes in the Supreme Court overturning the decision. That would have had a signal effect for numerous other glyphosate lawsuits in the USA, on which legal risks worth billions depend for the Dax group. But the US Supreme Court’s decision not to accept the Hardeman case comes as no surprise. President Joe Biden’s administration had already advised the Supreme Court against it. That was a remarkable turnaround – under Donald Trump, Washington had initially backed Bayer.
“We cannot understand the Supreme Court’s rejection of the Hardeman case,” Bayer said. In its statement, however, the group indicates that it intends to continue to seek a clarifying glyphosate judgment at the highest court level in the USA. Although this decision ends the Hardeman case, there are other cases – including Roundup – that the Supreme Court can deal with. “We are encouraged by the intense support from public officials, farming communities and other stakeholders following the US government’s legal about-face.”
Additional provisions of $4.5 billion
The Leverkusen company had already set the course for a defeat at the Supreme Court. Bayer made additional provisions of $4.5 billion last summer for this case. The company wants to use this money to set up a program to deal with the claims of potential new plaintiffs in the USA over the next 15 years. Bayer had previously set aside around $11 billion to settle Monsanto’s legacy legal issues with a major US settlement. Even if the Supreme Court’s decision was to be expected, Bayer’s shares initially reacted with significant price losses.
The many lawsuits Bayer is facing in the US are based in particular on an assessment by the World Health Organization’s International Agency for Research on Cancer. In 2015, she classified Monsanto’s weed killer as “probably carcinogenic” to humans. The US environmental protection agency EPA, on the other hand, has so far agreed with Bayer and considers glyphosate to be safe if used properly. The company had also argued before the Supreme Court that its weed killer Roundup was classified by the EPA as safe and that US federal law should not conflict with state court decisions.
But recently the environmental agency itself has come under legal pressure with its glyphosate assessment. On Friday, the EPA was ordered by an appeals court to re-examine the health risks. In their verdict, the judges were particularly bothered by the way the EPA justified that glyphosate is not carcinogenic. The underlying analysis is “incorrect” and is partly not in line with the guidelines of the authority. The EPA declined to comment on the criticism when asked. A spokeswoman said the glyphosate decision would be reviewed.
However, the tide has recently turned in favor of Bayer in the lawsuits involving the many individual US plaintiffs who blame Roundup for their cancers. After the group had lost the first three procedures, there was already the fourth success in a row on Friday. A jury in Jackson County, Oregon unanimously acquitted Bayer of the cancer charges. “We remain fully behind Roundup’s security,” the company said. Bayer announced that it would “self-confidently” defend itself in future legal conflicts on the subject.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
