Bayer AG received preliminary court approval Wednesday for a settlement intended to resolve tens of thousands of lawsuits alleging its glyphosate-based Roundup weedkiller causes cancer, according to a court decision in St. Louis, Missouri. The agreement, which could cost the company up to $7.25 billion over 21 years, represents a significant step toward mitigating the financial risks associated with the litigation, but faces further hurdles before finalization.
The preliminary approval, announced by Bayer, covers both existing and potential future claims from individuals who allege their non-Hodgkin’s lymphoma was caused by exposure to glyphosate. The company has increased its reserves for legal disputes by four billion euros to 11.8 billion euros to account for the settlement, a figure that significantly impacted its 2025 financial results.
This isn’t Bayer’s first attempt to resolve the Roundup litigation. A previous multi-billion dollar settlement in 2020 was blocked by a judge who criticized the settlement terms, forcing Bayer into lengthy renegotiations. The current agreement aims to address those earlier concerns and secure broader acceptance from plaintiffs.
The approval comes as Bayer awaits a ruling from the U.S. Supreme Court in the case of John Durnell, expected in June. A favorable decision from the Supreme Court would further bolster Bayer’s position and potentially limit future liability. Bayer continues to maintain that glyphosate is safe when used as directed.
Bayer CEO Bill Anderson has publicly criticized the U.S. Legal system in relation to the glyphosate litigation, stating, “That must stop.” The company is still far from resolving the issue, according to reports. The settlement encompasses approximately 67,000 existing claims and provides a framework for addressing future lawsuits over the next two decades.
The Bayer share price experienced volatility following the announcement, initially declining before partially recovering to close down around two percent at 37.10 euros. The outcome of the Supreme Court case and the finalization of the settlement remain key factors influencing investor sentiment.
