- Bayer wins in US glyphosate case
Pharmaceutical and agricultural chemical conglomerate Bayer has achieved a significant milestone in its efforts to resolve U.S. glyphosate litigation. On Thursday, a federal appeals court in Philadelphia ("U.S. Third Circuit of Appeals") ruled that federal law on warning labels for herbicides supersedes state law in Pennsylvania. In February, another U.S. appeals court had rejected this argument presented by Bayer.
Given the contradictory rulings, Bayer AG now hopes for a definitive ruling from the U.S. Supreme Court. On Friday, Bayer shares surged significantly.
Lawsuits have already cost billions
"Bayer is assessing the impact of this ruling on other pending cases and will present its arguments, fully adopted by the Third Circuit, to the U.S. Supreme Court," the company stated in response to the latest decision.
Bayer inherited the glyphosate lawsuits through its $63 billion acquisition of Monsanto in 2018. The litigation has already cost the company €10 billion. However, the issue remains unresolved, as do the costly U.S. lawsuits surrounding the banned environmental toxin PCB.
The news was well-received on the stock market. Despite recent struggles, Bayer shares led the DAX on Friday morning with an approximate eight percent gain, reaching €28.35. However, they remain one of the largest losers in the German benchmark index, with a year-to-date decline of around 16 percent.
Bayer's success in the U.S. glyphosate litigation hinges on a ruling from the U.S. Supreme Court, following the contradictory decisions by different appeals courts. The company's pharmaceutical products, including those involving glyphosate, could significantly benefit from a resolution in its favor.
