Tuesday saw a 15% increase in Bayer shares after the U.S. solicitor general supported the company’s attempt to persuade the Supreme Court to limit lawsuits claiming that its Roundup pesticide causes cancer.
According to analysts, the action will help the German corporation settle lawsuits pertaining to glyphosate by the end of 2026. On Monday, Solicitor General D. John Sauer said that the EPA has repeatedly authorized Roundup labels without cancer warnings and expressed the opinion that glyphosate is not likely to cause cancer in humans.
In the case of Monsanto Co. v. Durnell and the question of whether a federal insecticide rule supersedes state law, Bayer applauded the support. According to Bayer, the majority of the “tens of thousands” of Roundup cases are based on allegations based on failure-to-warn hypotheses.
Two months after Bayer paid $63 billion to acquire Monsanto in 2018, a California jury found in favor of a groundskeeper who had non-Hodgkin lymphoma.
According to Jefferies analysts, Bayer has a provision of EUR6.5 billion in the third quarter to cover ongoing and upcoming litigation, which is equivalent to about 6.60 euros per share.
At EUR34.75, Bayer shares (XE:BAYN) increased by more than 4 euros, the largest percentage rise since October 28, 2008.
