German pharmaceutical and agrochemical company Bayer has announced a proposed class settlement valued at up to $7.25 billion to resolve current and future U.S. lawsuits alleging that its Roundup weedkiller causes cancer.
The settlement, filed by Bayer’s Monsanto unit, is expected to be submitted in state court in St. Louis, Missouri.
The proposed nationwide settlement aims to establish a long-term claims program funded by capped annual payments over a period of up to 21 years.
It is designed not only to address the approximately 65,000 plaintiffs currently pursuing claims in state and federal courts but also to prevent future lawsuits. Under the terms, individuals diagnosed with non-Hodgkin lymphoma who were exposed to Roundup before the filing date may file claims for a portion of the settlement for up to two decades.
Bayer acquired Monsanto in 2018 for $63 billion, inheriting the Roundup product and the associated litigation. Plaintiffs claim that exposure to Roundup caused them to develop non-Hodgkin lymphoma and other cancers, either through home use or occupational exposure.
Following the announcement, Bayer shares surged as much as 7.7%, reaching their highest level since September 2023. By 1839 GMT, shares listed in Frankfurt were up 7.2%.
Bayer CEO Bill Anderson expressed confidence that the settlement would resolve the vast majority of claims, though he did not specify how many plaintiffs currently support the deal. The company also disclosed that it had reached confidential settlements with certain law firms for other Roundup cases but did not provide further details.
Previously, Bayer paid approximately $10 billion to settle most Roundup lawsuits pending as of 2020 but was unable to secure an agreement covering future claims. The company has experienced mixed outcomes in court, winning several trials but also facing significant jury awards, including a $2.1 billion verdict in Georgia in March 2023. These verdicts have affected investor confidence and pressured Bayer to find a comprehensive resolution.
In addition to the settlement, Bayer is awaiting a U.S. Supreme Court decision on an appeal that could significantly limit its liability in Roundup litigation. Oral arguments are scheduled for late April 2026. A favorable ruling could overturn large verdicts currently under appeal and prevent future claims from individuals opting out of the settlement.
Financially, Bayer expects its litigation provisions and liabilities to increase from 7.8 billion euros ($9.24 billion) to 11.8 billion euros. The company anticipates litigation-related payouts of around 5 billion euros in 2026 and forecasts negative free cash flow for the year. Bayer has postponed the publication of its 2025 financial results and 2026 guidance to March 4 to incorporate the impact of the settlement agreements.
