Investors sour on Bayer's roundup litigation deal
Proposed $7.25B settlement comes in cancer lawsuit
Reuters
FRANKFURT, Germany - Bayer's shares slumped as much as 12% in morning trading on February 18, [2026] wiping out the previous day's gains, as investors questioned whether a proposed $7.5 billion settlement of cancer lawsuits over its Roundup weedkiller would mark a decisive turnaround.
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The German pharmaceutical and crop protection group said late on February 17 [2026] it had reached an agreement to resolve tens of thousands of current and future product liability claims after years of grappling with legal risks tied to Roundup, acquired in the 2018 takeover of Monsanto.
..... Bayer said the proposed nationwide settlement filed on February 17 [2026] in state court in St. Louis, Missouri, would establish a long-term claims program funded by capped annual payments over up to 21 years.
..... The company is facing claims over Roundup from approximately 65,000 plaintiffs in U.S. state and federal courts. The plaintiffs say they developed non-Hodgkin lymphoma and other forms of cancer after using the weedkiller, either at home or on the job.
..... JPMorgan analysts said the settlement moved in the right direction but noted hat Bayer had not disclosed how many plaintiffs must opt in for the deal to proceed, and it was also unclear how willing they might be to accept the offer.
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"There remain considerations such as the necessity for court approval and the possibility of a high rate of opt-outs," they said.
..... Late on February 17, [2026] Markus Manns, a pro folio manager at Union Investments, also warned that the proposal was "not yet the breakthrough that many investors had hopped for."
..... Both JPMorgan and Manns said much still hinged on an outstanding U.S. Supreme Court ruling on the overall merits of the lawsuits.
..... Bayer has petitioned the court to invalidate the claims, which are mainly based on state law, arguing that federal regulations in its favor should take precedence.
..... Stephen Wuif, an analyst at brokerage Oddo BHF, cautioned that a sequence of legal hurdles must be cleared for the settlement to take effect, and that the Supreme Court's view would be an added uncertainly.
..... "This is not a done deal yet," he said.
..... A Bayer spokesperson said the group was confident of a favorable Supreme Court outcome, though it would not speculate on its chances of success.
,,,,, He directed Reuters to a legal brief by U.S. solicitor General D, John Sauer in December, [2025] which showed President Donald Trump's administration agrees with Bayer's reading of the law at issue.
..... The move however, gives Bayer management more wiggle room, said Union;s Manns.
..... "Dealing with the lawsuits tied up a lot of management capacity, which can now be sued for strategic issues," said Manns, suggesting portfolio changes, structural measures and faster market launches.