Bayer Waters Down Glyphosate Woes with Settlement, Steers Clear of Bankruptcy So Far
Bayer Might File Bankruptcy for Monsanto to Dismiss Glyphosate Lawsuits
The acquisition of Monsanto by Bayer has been a rollercoaster ride. A slew of glyphosate lawsuits has halted the German conglomerate's stride, with the financial ramifications uncertain. In the face of a potential settlement failure, reports suggest Bayer may be weighing the pros and cons of sending Monsanto into bankruptcy.
Listen to this! In the event that a planned settlement with thousands of alleged glyphosate victims in the U.S. goes astray, Bayer is reportedly pondering an option gift-wrapped in legal complexities - a Monsanto bankruptcy to separate itself from billions in glyphosate-related damages. The Wall Street Journal is the bearinger of this tantalizing news, given to them by sources privy to the matter.
Glyphosate, the active ingredient in Roundup, has stirred up controversy as alleged carcinogen. Bayer holds a stance of polar opposite, denying the cancer-causing claims, while U.S. authorities have yet to label it as such. Despite Bayer's denials and regulatory assessments, around $10 billion (€8.9 billion) has already been splurged on glyphosate lawsuits, with an additional 67,000 cases still in the pipeline. A whopping $5.9 billion has been earmarked for these claims.
Recently, a court in Georgia awarded a plaintiff over $2 billion, claiming Roundup induced cancer. Bayer has since appealed this judgement. The majority of the remaining cases are presently in a Missouri court, where Bayer is actively seeking a settlement.
As the legal quagmire deepens, reports float that a Monsanto bankruptcy could be a means to stem the tide. Via bankruptcy, the company would evade creditor claims, typically snuffing out user’s claims on the company. Notably, several U.S. companies have adopted this strategy to jettison liability claims. However, it's a legally contentious path that often sparks lengthy court battles.
Interestingly, Bayer has already roped in a legal firm and a consulting firm to examine this plan. Alas, the company remains tight-lipped about their next move.
The consequences of this strategy would bring an end to the money-losing Monsanto chapter for Leverkusen. The colossal $63 billion Bayer shelled out for Monsanto has vanished into thin air. The overall damage is far greater; when Bayer took over Monsanto in June 2018, the company's stock market valuation was around €100 billion. Today, it's a mere €25 billion.
Oh, by the way, Bayer is a multinational powerhouse operating in pharmaceuticals, chemicals, and life sciences. And, Monsanto? It's the U.S. competitor Bayer bought to bolster its agricultural business.
Source: ntv.de
- Bayer
- Monsanto
- Glyphosate
- Lawsuits
- Settlements
- Bayer, in the face of escalating glyphosate lawsuits and potential settlement failures, is reportedly considering employing a controversial strategy within the industry – filing for Monsanto's bankruptcy, which, if successful, could separate the German conglomerate from billions in glyphosate-related damages.
- The financial implications of the Monsanto acquisition by Bayer have been substantial, with the company's stock market valuation plummeting from €100 billion in 2018 to €25 billion today. This decline is largely attributed to the legal costs associated with the glyphosate lawsuits, a matter that underscores the importance of a comprehensive employment and community policy in managing such significant financial challenges.
