Bayer settles U.S. Roundup, dicamba and PCB litigation for more than $10 billion

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In an expensive clean-up of Monsanto litigation messes, Bayer AG said Wednesday that it will pay out more than $10 billion to settle tens of thousands of U.S. claims brought against Monsanto over its Roundup herbicide, as well as $400 million to resolve lawsuits over Monsanto’s dicamba herbicide and $650 million for PCB pollution claims.

The resolutions come two years after Bayer bought Monsanto for $63 billion and almost immediately saw share prices plummet due to the Roundup liability.

Bayer announced that it will pay $10.1 billion to $10.9 billion total to resolve roughly 75 percent of the claims by an estimated 125,000 people who allege exposure to Monsanto’s Roundup weed killers caused them to develop non-Hodgkin lymphoma. The deal includes plaintiffs who have retained attorneys with the intent to sue but whose cases have not yet been filed, Bayer said.  Within that total, a payment of $8.8 billion to $9.6 billion will resolve the current litigation and $1.25 billion is being set aside to support potential future litigation, the company said.

The plaintiffs included in the settlement are those signed with the law firms that have been leading the Roundup federal multi-district litigation (MDL) and include The Miller Firm of Virginia, the Baum Hedlund Aristei & Goldman firm of Los Angeles and the Andrus Wagstaff firm of Denver, Colorado.

“After years of hard fought litigation and a year of intense mediation I am glad to see our clients will now be compensated,” said Mike Miller, of the Miller law firm.

The Miller firm and the Baum Hedlund firm worked together to win the first case to go to trial, that of California groundskeeper Dewayne “Lee” Johnson. Andrus Wagstaff won the second trial and The Miller Firm won the third case to go to trial. In all, the three trials resulted in jury verdicts totaling more than $2.3 billion, though the trial judges in each case lowered the verdicts.

The juries in all three trials found that Monsanto’s glyphosate herbicides, such as Roundup, caused non-Hodgkin lymphoma and that Monsanto covered up the risks and failed to warns users.

Each of the three trial verdicts are going through the appeals process now and Bayer said the plaintiffs in those cases are not included in the settlement.

Bayer said future Roundup claims will be part of a class agreement subject to approval by Judge Vince Chhabria of the U.S. District Court for the Northern District of California, who ordered the year-long mediation process that led to the settlement.

The agreement would take any future findings on cancer claims out of the hands of  juries, Bayer said. Instead, there will be the creation of an independent “Class Science Panel.” The Class Science Panel will determine whether Roundup can cause non-Hodgkin lymphoma, and if so, at what minimum exposure levels.  Both the plaintiffs in the class action and Bayer will be bound by the Class Science Panel’s determination.  If the Class Science Panel determines there is no causal connection between Roundup and non-Hodgkin lymphoma then the class members will be barred from claiming otherwise in any future litigation against Bayer.

Bayer said the Class Science Panel’s determination is expected to take several years and class members will not be permitted to proceed with Roundup claims prior to that determination. They also cannot seek punitive damages, Bayer said.

“The Roundup™ agreements are designed as a constructive and reasonable resolution to a unique litigation,” said Kenneth R. Feinberg, the court-appointed mediator for the settlement talks.

Even as they announced the settlement, Bayer officials continued to deny Monsanto’s glyphosate herbicides cause cancer.

“The extensive body of science indicates that Roundup does not cause cancer, and therefore, is not responsible for the illnesses alleged in this litigation,” Bayer CEO Werner Baumann said in a statement.

Dicamba Deal

Bayer also announced a mass tort agreement to settle U.S. dicamba drift litigation, which involves claims from farmers that use of dicamba herbicides developed by Monsanto and BASF to be sprayed over dicamba-tolerant crops developed by Monsanto caused widespread crop loss and injury.

In a trial earlier this year, Monsanto was ordered to pay $265 million to a Missouri peach farmer for dicamba drift damage to his orchard.

More than 100 other farmers have made similar legal claims. Bayer said it will pay up to a total of $400 million to resolve the multi-district dicamba litigation that is pending in the U.S. District Court for the Eastern District of Missouri, with claims for the 2015-2020 crop years. Claimants will be required to provide proof of damage to crop yields and evidence that it was due to dicamba in order to collect. The company expects a contribution from its co-defendant, BASF, towards this settlement.

The settlement will provide “much-needed resources for farmers” who have suffered crop losses due to drifting dicamba herbicides, said lawyer Joseph Peiffer of the Peiffer Wolf law firm, which represents farmers with dicamba claims.

“The settlement announced today is an important step to making things right for the farmers who just want to be able to put food on the table of America and the world,” Peiffer said.

Earlier this month a federal court ruled that the Environmental Protection Agency had violated the law when it approved dicamba herbicides made by Monsanto, BASF and Corteva Agriscience. The court found the EPA ignored the risks of dicamba damage.

PCB Pollution Settlement 

Bayer also announced a series of agreements that resolve cases the company said represent most of its  exposure to litigation involving water contamination by PCBs, which Monsanto manufactured until  1977. One agreement establishes a class that includes all local governments with EPA permits involving water discharges impaired by PCBs. Bayer said it will pay a total of approximately $650 million to the class, which will be subject to court approval.

Additionally, Bayer said it has entered into separate agreements with the Attorneys-General of New Mexico, Washington, and the District of Columbia to resolve PCB claims. For these agreements, which are separate from the class, Bayer will make payments totally approximately $170 million.

Bayer said the potential cash outflow will not exceed $5 billion in 2020 and $5 billion in 2021 with the remaining balance to be paid in 2022 or later.

As settlement talks drag on, another Monsanto Roundup trial nears

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Continuing to lack a resolution in the massive nationwide Roundup cancer litigation, a leading U.S. plaintiffs’ law firm is pressing ahead with preparations for a California trial involving a critically ill cancer patient and his wife who are suing the former Monsanto company claiming the man’s disease is due to years of his use of Roundup herbicide.

The Miller Firm, which has about 6,000 Roundup plaintiffs, is now preparing to go to trial against Monsanto’s German owner Bayer AG on May 5 in Marin County Superior Court in California. The case has been granted preference status –  meaning a quick trial date – because plaintiff Victor Berliant is critically ill. A deposition of Berliant is being scheduled for next week.

Berliant, a man in his 70s, has been diagnosed with Stage IV T-cell non-Hodgkin lymphoma and is planning to undergo a bone marrow transplant in March after multiple rounds of chemotherapy failed. His lawyers say it is necessary to take his deposition before the transplant as there is a risk he may not survive the procedure or may be otherwise unable to participate at the May trial.

Berliant used Roundup from approximately 1989 to 2017, according to his lawsuit. His wife, Linda Berliant, is also named as a plaintiff, asserting loss of consortium and other damages.

Other cases with trial dates are pending in the St. Louis, Missouri area and in Kansas City,  Missouri, including one case with more than 80 plaintiffs scheduled for trial March 30 in St. Louis City Court. A hearing was supposed to be held today in that case, Seitz v. Monsanto, but was cancelled.

The Miller firm is one of the primary plaintiffs’ firms in the Roundup litigation and caused a stir last month by canceling a St. Louis trial shortly before opening statements were to begin in order to facilitate settlement talks.

The fact that the Miller firm is pressing ahead with more trials underscores the lack of agreement between Bayer and the attorneys for a pool of plaintiffs that some sources say now numbers above 100,000.

Both the Miller firm and the firm of Weitz & Luxenberg, which have close to 20,000 plaintiffs combined, have been at the forefront of negotiations, sources close to the litigation say.

Certain plaintiffs who have agreed to cancel their trials have secured agreements on specific settlement amounts, sources involved in the litigation said, while other parties are said to be discussing deals that are contingent upon the successful completion of a larger overall settlement of the U.S. litigation.

But a comprehensive settlement to put the Roundup claims to rest for the long term remains challenging, sources said. Settling with the current pool of plaintiffs will not protect Bayer from future litigation over Roundup cancer causation claims.

The Wall Street Journal has called the effort to forge a settlement an “extraordinary challenge.” 

Many Bayer investors are hoping for a resolution no later than Bayer’s annual meeting on April 28 in Bonn, Germany.

Numbers of $8 billion-$10 billion have been floated for weeks by litigation sources as a potential settlement total for the mass of cases that has dogged Bayer ever since it bought Monsanto in June of 2018 for $63 billion.

The first three trials went badly for Monsanto and Bayer as outraged juries awarded over $2.3 billion in damages to four plaintiffs. Trial judges lowered the jury awards to a total of roughly $190 million, and all are under appeal but the company’s share prices has been sharply depressed by the repeated trial losses.

The trials have turned a public spotlight on internal Monsanto record  that showed how Monsanto engineered scientific papers proclaiming the safety of its herbicides that falsely appeared to be created solely by independent scientists; used third parties to try to discredit scientists reporting harm with glyphosate herbicides; and collaborated with Environmental Protection Agency officials to protect Monsanto’s position that its products were not cancer-causing.

“The last thing Bayer wants is another bad headline on the Roundup litigation” said Marine Chriqui, a London-based market analyst. “I think it is really important for them not to be in a difficult situation at the time of the meeting. “

Some industry observers suggest that Bayer may continue to settle each case just before trial for many months as appeals play out.

Lawyers for both sides are currently awaiting a date for oral arguments before the appeals court in the case of Johnson v. Monsanto, which was the first to go to trial in the summer of 2018.

Some of the plaintiffs’ attorneys are contemplating making an appearance in Bonn the week of the shareholders’ meeting if a settlement is not achieved, litigation sources said.

See the Email Trail Showing Influence Peddling by Press Association to Bayer

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Journalists around the globe have reacted with outrage to revelations published in The Guardian  this week that show Thanos Dimadis, the former executive director of the Foreign Press Foundation, offered an unusual arrangement to Bayer AG that called for using the press organization, which is dedicated to protecting a free press, in ways that would also protect and benefit Bayer’s business interests. In exchange for the influence and access into the press association, Bayer agreed to provide generous funding, the emails show, including extra money for Dimadis personally.

Dimadis has recently become president of a new organization called the Association of Foreign Correspondents in the USA (AFC-USA), which is primarily funded by Bayer, the German pharmaceutical and chemical giant that last year bought Monsanto Co.

Monsanto was mired in litigation over allegations its Roundup herbicide causes cancer when Bayer bought the company in June 2018. Three trial losses since the acquisition have worried Bayer investors and left Bayer to defend against Monsanto’s documented history of trying to manipulate media, scientists and regulators to benefit its own interests.

Bayer officials assert Bayer is dedicated to truth and transparency and supports a free press. The company denies it sought or received any undue influence within the Foreign Press Association or the new Association of Foreign Correspondents.

Here is a list of several of the emails:

Details of arrangement with Bayer

List of journalists for Bayer to select for engagement

Dimadis asks Bayer’s direction for press association “to strategize properly”

Dimadis asks for extra money for himself from Bayer

Bayer appreciates Dimadis’ actions and agrees to add money to the budget for Dimadis

See the full story.