The Monsanto unit of Bayer AG has been ordered by a Pennsylvania jury to pay a staggering $2.2 billion to John McKivison, a former Roundup user who attributed his cancer to the weedkiller. According to recent litigation over the herbicide, this verdict is the largest in the past five years.
This significant lawsuit payout is based on McKivison’s claim that his years of Roundup use at work and home led to his cancer diagnosis. This exposure was particularly potent, considering the 49-year-old’s profession as a landscaper.
Notably, Monsanto has seen both wins and losses when it comes to Roundup trials. According to Bloomberg, Monsanto has come out victorious in 10 out of 16 court cases. Still, the cases it lost, including a $1.5 billion verdict in Missouri awarded to three previous herbicide users, have been substantial. Its next trial is set to occur early next month at a state court in Delaware.
The German conglomerate is under immense pressure, primarily due to the immense liability inherited with its acquisition of St. Louis-based Monsanto in 2018 for $63 billion. Upset investors and the company’s inclination against separating its consumer-health and crops-science departments have added to the growing suspense.
Despite these setbacks, Bayer maintains its position against the court’s decision, stating via an emailed excerpt that the organization disagrees with the jury’s verdict. Bayer argues that the verdict contradicts the considerable weight of scientific evidence and worldwide regulatory and scientific assessments. They are optimistic about successfully appealing to overturn the verdict and dismiss, or at least lessen, the unconstitutionally excessive damage award.
This isn’t the first time Roundup has faced legal action. In 2019, a California jury mandated a combined $2.055 billion in damages payable to a couple claiming their cancer diagnoses resulted from using the weedkiller for 30 years. This payout was later cut down to $87 million and approved by the US Supreme Court.
As these legal proceedings churn in the background, Bayer’s stock value has taken a hit. A downgrade from neutral to underperform by Bank of America analysts led to a nearly 3% decrease before the jury announced its verdict. This downgrade was a result of the overhang created by the ongoing Roundup litigation.
Bayer has prepared itself for additional legal fallout, setting aside as much as $16 billion to deal with more than 100,000 Roundup cases inherited from the Monsanto deal. This preparation is against the backdrop of a second wave of lawsuits insisting that glyphosate and other elements of the herbicide are carcinogens. Notably, in 2022, Bayer’s attempt to bar all Roundup cases from proceeding on procedural grounds was rejected by the US Supreme Court.
The case, McKivison v. Nouryon Chemicals, has amplified the legal debate around the safety of Roundup and its ingredients. However, it’s clear that the Roundup cases represent high-stakes litigation with profound implications for big corporations, their shareholders, and consumers alike.