Bayer AG shares rose more than 12% following the U.S. Supreme Court’s decision to hear an appeal in a high-profile lawsuit involving its Roundup herbicide. The case centers on claims that glyphosate-based weedkillers cause cancer.
- Bayer AG shares rose 12.4% following Supreme Court’s decision to hear Roundup appeal
- Case involves a $80 million jury verdict from 2023 linking Roundup to non-Hodgkin lymphoma
- Over 125,000 Roundup lawsuits have been filed in the U.S. since 2016
- Bayer allocated €1.8 billion for Roundup liabilities in 2023
- Supreme Court decision expected no earlier than late 2027
- Potential outcome could affect thousands of pending product liability cases
Bayer AG’s stock climbed sharply on Monday after the U.S. Supreme Court announced it would review a landmark legal appeal tied to its Roundup weedkiller. The court’s acceptance of the case, which stems from a 2023 California jury verdict awarding $80 million in damages to a plaintiff alleging Roundup caused his non-Hodgkin lymphoma, has reignited investor interest in the company's litigation risk profile. The appeal focuses on whether lower courts properly handled scientific evidence regarding glyphosate’s carcinogenicity and the role of expert testimony in the trial. The ruling could significantly influence how future products are assessed under U.S. tort law, particularly those involving chemical safety and public health. With over 125,000 Roundup-related lawsuits filed nationwide since 2016, the outcome may set a precedent for thousands of pending cases. If the Supreme Court overturns or limits previous rulings, Bayer could see reduced liability exposure, potentially saving billions in settlement costs and legal fees. Conversely, affirming past decisions might keep pressure on the company to continue funding large-scale settlements. Bayer closed trading at €52.70, up 12.4% from Friday’s close, reflecting market optimism about potential resolution of long-standing litigation. This movement also lifted broader agricultural chemical stocks, with Corteva Inc. and Syngenta Group seeing modest gains as investors reassessed sectoral risks. Analysts note that while the Supreme Court’s involvement signals a pivotal moment, the final decision is not expected until late 2027 at the earliest. The legal battle has deeply impacted Bayer’s financial performance since its acquisition of Monsanto in 2018. In 2023 alone, the company set aside €1.8 billion for Roundup-related liabilities, accounting for nearly 15% of its total legal expenses. The upcoming appeal underscores the ongoing challenges in balancing corporate responsibility, regulatory science, and public perception in high-stakes product liability cases.