Bayer says legal woes could force it to pull weedkiller
Bayer said it could be forced to pull its Roundup weedkiller from the market if it is not able to contain legal troubles.
Already, has spent over $10 billion to settle cases in the US alleging that it failed to disclose Roundup's health risks.
Claimants say that gthe weedkiller has an ingredient that causes blood cancers, but Bayer says scientific studies and regulatory approvals show it is safe.
For climate change news and analysis, go to News24 Climate Future.
German chemicals giant Bayer said Friday it could be forced to pull its Roundup weedkiller from the market if it is not able to contain simmering legal troubles.
"We're nearing a point where the litigation industry could force us to even stop selling this vital product," CEO Bill Anderson said at Bayer's annual general meeting.
The group had "no specific plans" to discontinue sales in the United States, Anderson said in a question-and-answer session.
Bayer however "cannot continue to market the product in the way we have in the past... in a financially sustainable way because of the lawsuits", he added.
In Anderson's opinion it was "very important for US farmers, US consumers... to make changes in the law".
The stakes were also "really high" for Bayer, which has seen its share price tumble in the wake of the its acquisition of Roundup-maker Monsanto in 2018.
"The status quo is not an option," Anderson said.
Bayer has long battled to bring the legal troubles under control and has said it aims to significantly contain litigation "by the end of 2026".
Already, the Leverkusen-based group has spent over $10 billion (8.8 billion euros) to settle cases in the United States alleging that Bayer failed to disclose Roundup's health risks.
US court battle
Claimants say that glyphosate, the active ingredient in Roundup, causes blood cancers, while Bayer says scientific studies and regulatory approvals show that the weedkiller is safe.
Bayer this month made another request for the US Supreme Court to intervene in the case, its third such attempt and the first since Anderson took the reins in 2023.
After being twice rebuffed by the court, Bayer is hopeful of more success following rulings by federal appellate courts, which the German group said support its case.
Bayer has at the same time asked investors to approve capital increase through the issuance of new stock to cover potential legal costs related to Roundup.
The efforts to manage the possible damage have however done little to quell investor concerns about the group's direction.
Speaking at the meeting, Deka Investment manager Ingo Speich said Anderson's record as CEO was "disastrous".
Shareholders were now being asked to "pay the price" for Roundup's issues, Speich said, describing the move as a "bitter pill to swallow".
"Why should everything be different this time and the wave of lawsuits stopped with more money?", said Janne Werning of Union Investment.
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