Bayer’s Monsanto headache persists

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The migraine that is Monsanto doesn’t appear to be going away anytime soon for Bayer AG.

Efforts at settling the mass of lawsuits brought in the United States by tens of thousands of people who claim Monsanto’s Roundup herbicides gave them cancer continue to inch forward, but are not addressing all outstanding cases, nor are all plaintiffs offered settlements agreeing to them.

In a letter to U.S. District Judge Vince Chhabria, Arizona attorney David Diamond said that representations made by the lawyers leading settlement talks with Bayer on behalf of plaintiffs did not accurately reflect the situation for his own clients. He cited a “lack” of “settlement-related experiences” with Bayer and he requested that Judge Chhabria advance several of Diamond’s cases forward for trials.

“Leadership’s representations regarding settlement do not represent my clients’ settlement
related experiences, interests or position,” Diamond told the judge.

Diamond wrote in the letter that he has 423 Roundup clients, including 345 who have cases pending before Chhabria in the multidistrict litigation (MDL) in the U.S. District Court for the Northern District of California. Alongside the MDL are thousands of plaintiffs whose cases are pending in state courts.

Diamond’s outreach to the judge followed a hearing late last month in which several of the leading firms in the litigation and lawyers for Bayer told Chhabria they were close to resolving most, if not all, of the cases before the judge.

Bayer has reached important settlements with several of the leading law firms who collectively represent a significant share of the claims brought against Monsanto. In June, Bayer said it would provide $8.8 billion to $9.6 billion to resolve the litigation.

But controversy and conflict have dogged the overall settlement offers.

Several plaintiffs represented by the large firms and who spoke on condition that their names not be used, said they are not agreeing to the terms of the settlements, meaning their cases will be directed into mediation and, if that fails, to trials.

After buying Monsanto in 2018, Bayer has been struggling to figure out how to put an end to the litigation that includes more than 100,000 plaintiffs. The company lost all three of the three trials held to date and has lost the early rounds of appeals seeking to overturn the trial losses. Juries in each of the trials found that Monsanto’s glyphosate-based herbicides, such as Roundup, do cause cancer and that Monsanto spent decades hiding the risks.

The company’s efforts to resolve the litigation have been stymied in part by the challenge of how to head off claims that could be brought in the future by people who develop cancer after using the company’s herbicides.

Problems Just Keep Mounting  

Bayer has threatened to file for bankruptcy if it cannot quell the Roundup litigation and on Wednesday the company issued a profit warning and announced billions in cost cuts, citing a “lower than expected outlook in the agricultural market” amid other factors. The news sent shares in the company tumbling.

In reporting Bayer’s troubles Barron’s noted: “The problems just keep mounting for Bayer and its investors, who by now must be used to regular bouts of disappointing news. The stock has now fallen more than 50% since the Monsanto deal was closed in June 2018. “This latest update only adds to the case for the Monsanto deal being one of the worst in corporate history.”

Internal FDA Emails: Weedkiller Found in Granola and Crackers

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This article was originally published in the Guardian.

By Carey Gillam

US government scientists have detected a weedkiller linked to cancer in an array of commonly consumed foods, emails obtained through a freedom of information request show.

The Food and Drug Administration (FDA) has been testing food samples for residues of glyphosate, the active ingredient in hundreds of widely used herbicide products, for two years, but has not yet released any official results.

But the internal documents obtained by the Guardian show the FDA has had trouble finding any food that does not carry traces of the pesticide.

“I have brought wheat crackers, granola cereal and corn meal from home and there’s a fair amount in all of them,” FDA chemist Richard Thompson wrote to colleagues in an email last year regarding glyphosate. Thompson, who is based in an FDA regional laboratory in Arkansas, wrote that broccoli was the only food he had “on hand” that he found to be glyphosate-free.

That internal FDA email, dated January 2017, is part of a string of FDA communications that detail agency efforts to ascertain how much of the popular weedkiller is showing up in American food. The tests mark the agency’s first-ever such examination.

“People care about what contaminants are in their food. If there is scientific information about these residues in the food, the FDA should release it,” said Tracey Woodruff, a professor in the University of California San Francisco School of Medicine. “It helps people make informed decisions. Taxpayers paid for the government to do this work, they should get to see the information.”

The FDA is charged with annually testing food samples for pesticide residues to monitor for illegally high residue levels. The fact that the agency only recently started testing for glyphosate, a chemical that has been used for over 40 years in food production, has led to criticism from consumer groups and the Government Accountability Office (GAO). Calls for testing grew after the International Agency for Research on Cancer (IARC) classified glyphosate as a probable human carcinogen in 2015.

Glyphosate is best known as the main ingredient in Monsanto Co’s Roundup brand. More than 200m pounds are used annually by US farmers on their fields. The weedkiller is sprayed directly over some crops, including corn, soybeans, wheat and oats. Many farmers also use it on fields before the growing season, including spinach growers and almond producers.

Thompson’s detection of glyphosate was made as he was validating his analytical methods, meaning those residues will probably not be included in any official report.

Separately, FDA chemist Narong Chamkasem found “over-the-tolerance” levels of glyphosate in corn, detected at 6.5 parts per million, an FDA email states. The legal limit is 5.0 ppm. An illegal level would normally be reported to the Environmental Protection Agency (EPA), but an FDA supervisor wrote to an EPA official that the corn was not considered an “official sample”.

When asked about the emails and the agency’s testing, an FDA spokesman said only that the FDA had not found any illegal levels in corn, soy, milk or eggs, the four commodities it considers part of its glyphosate “special assignment”. He did not address the unofficial findings revealed in the emails.

The FDA’s official findings should be released later this year or early in 2019 as part of its 2016 annual residue report. The reports typically are released two to two and a half years after the data is collected.

Along with glyphosate, the agency has been trying to measure residues of the herbicides 2,4-D and dicamba because of projected increased use of these weedkillers on new genetically engineered crops. The FDA spokesman said that the agency has “expanded capacity” for testing foods for those herbicides this year.

Other findings detailed in the FDA documents show that in 2016 Chamkasem found glyphosate in numerous samples of honey. Chamkasem also found glyphosate in oatmeal products. The FDA temporarily suspended testing after those findings, and Chamkasem’s lab was “reassigned to other programs”, the FDA documents show. The FDA has said those tests were not part of its official glyphosate residue assignment.

Pesticide exposure through diet is considered a potential health risk. Regulators, Monsanto and agrochemical industry interests say pesticide residues in food are not harmful if they are under legal limits. But many scientists dispute that, saying prolonged dietary exposure to combinations of pesticides can be harmful.

Toxicologist Linda Birnbaum, who is director of the US National Institute of Environmental Health Sciences (NIEHS), said that current regulatory analysis of pesticide dangers does not account for low levels of dietary exposures.

“Even with low levels of pesticides, we’re exposed to so many and we don’t count the fact that we have cumulative exposures,” Birnbaum said.

The US Department of Agriculture was to start its own testing of foods for glyphosate residues in 2017 but dropped the plan.

The lack of government residue data comes as Monsanto attempts to bar evidence about glyphosate food residues from being introduced in court where the company is fighting off allegations its Roundup products cause cancer.

In a case set for trial on 18 June, San Francisco superior court judge Curtis Karnow recently denied the company’s motion to keep the jury from hearing about residues in food. The judge said that although Monsanto worries the information “will inflame the jury against Monsanto based on their own fear that they may have been exposed”, such information “should not be excluded”.