FRANKFURT, Aug 28 — German chemical giant Bayer said today it had hit “bumps in the road” in efforts to settle US lawsuits blaming its glyphosate weedkiller for causing cancer after a California judge raised concerns over the settlement.
Bayer announced an agreement in June worth more than US$10 billion (RM41.6 billion) to settle some 125,000 claims in the United States over the Roundup weedkiller it acquired after buying American agrochemical group Monsanto for US$63 billion in 2018.
At a hearing yesterday, US district judge Vince Chhabria said he was concerned that Bayer had “manipulated” the settlement process, according to Bloomberg News.
As a result, he threatened to allow the plaintiffs’ litigation process to restart, putting the whole deal at risk of collapse.
According to Bloomberg, the judge said he was concerned that by keeping the lawsuits on pause, “am I complicit in whatever shenanigans are taking place on the Bayer side?”
He is expected to make a decision over the next month.
Shares in Bayer fell more than three per cent in early trading in Frankfurt on Friday, compared with a DAX 30 index that was down 0.2 per cent.
“There are often some bumps in the road in implementing a resolution of this magnitude but we remain confident that a comprehensive settlement will be finalised and executed,” Bayer said in a statement.
Judge Chhabria’s concerns are the second legal setback for Bayer in its push the finally end the Roundup headache.
The same judge last month criticised Bayer’s US$1.25 billion proposal to shut down future Roundup lawsuits, forcing the German giant to take another look at the plan.
Bayer would not be admitting any wrongdoing under the settlement packages.
In a separate case, Bayer this month agreed to pay US$1.6 billion to settle nearly all claims in the US on birth control implant Essure, over allegations it had caused health issues.
Bayer reported a net loss of 9.55 billion euros in the second quarter of 2020, which it said reflected the “exceptional impact” of the Roundup and Essure litigation. — AFP
