Judge Cuts Bayer's $1.56B Roundup Verdict

Judge Cuts Bayer's $1.56B Roundup Verdict

Introduction

A Missouri judge has significantly reduced a $1.56 billion verdict against Bayer to $611 million in a lawsuit involving three individuals who alleged that the company's Roundup weed killer caused their cancer.

The reduction primarily stemmed from slashing punitive damages. In November, a Cole County, Missouri, jury found Bayer's Monsanto unit liable to the plaintiffs, attributing their non-Hodgkin's lymphoma to Roundup exposure. The jury held Monsanto accountable for negligence, design defects, and failure to warn about Roundup's risks, awarding $61.1 million in compensatory damages and $1.5 billion in punitive damages, evenly distributed among the plaintiffs.

However, on March 15, the judge upheld the $61.1 million compensatory damages but significantly decreased punitive damages to nine times that amount, totaling $549.9 million. This adjustment aligns with the U.S. Supreme Court's guidance, suggesting punitive damages should generally not exceed nine times compensatory damages.

Bayer promptly sought to invalidate the verdict and reduce damages, subsequently filing an appeal notice on March 22. The company maintains that numerous studies spanning decades have demonstrated the safety of Roundup and its active ingredient glyphosate.

While Bayer disagreed with the court's decision regarding damages, it believes the reduced amount remains excessive and inconsistent with legal principles. Conversely, the plaintiffs' lawyer expressed satisfaction with the adjusted awards, asserting they align with evidence showcasing Monsanto's disregard for consumer safety.

Roundup, widely used in the United States, saw its home sales discontinued by Bayer last year. Since Bayer's acquisition of Monsanto in 2018, the company has faced extensive litigation regarding Roundup's alleged cancer-causing properties. In 2020, Bayer agreed to settle a substantial portion of the litigation for $10.9 billion but failed to resolve future cases.

Of the 167,000 claims Bayer encountered, approximately 113,000 have been settled or deemed ineligible. While Bayer has prevailed in most recent Roundup trials, plaintiffs have secured verdicts exceeding $4 billion, including a $2.25 billion award in January. Bayer is actively appealing these decisions.