Bayer Mulling Monsanto Bankruptcy as Glyphosate Lawsuit Shield
Bayer Mulls Bankruptcy for Monsanto to Dismiss Glyphosate Lawsuits
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Faced with a sea of glyphosate lawsuits, Bayer is rumored to be pondering a dramatic move. If the settlement talks with a chunk of the claimants fall flat, the German pharmaceutical giant might put its American subsidiary, Monsanto, in bankruptcy court—claiming relief from billions in potential damages related to glyphosate [1][2].
The infamous ingredient glyphosate, marketed in the U.S. as Roundup, is accused of causing cancer. However, Bayer stands firm in denying these claims. Neither the U.S. authorities nor others have classified glyphosate as carcinogenic [3].
Already, Bayer has shelled out approximately $10 billion (roughly €8.9 billion) in glyphosate-linked settlements. Remaining on the docket are over 67,000 cases, for which Bayer has reserved $5.9 billion [3].
Recently, a Georgia court ordered the firm to pay a staggering $2 billion to a plaintiff who claimed Roundup caused his cancer. Bayer has appealed this ruling. Most other lawsuits are stalled in a Missouri state court, where Bayer is seeking a settlement [4].
If the talks stall and the financial risk of glyphosate lawsuits remains uncertain, Bayer might pursue bankruptcy for Monsanto. According to insider sources, Bayer has enlisted the services of a law firm and a consulting firm to assess such a move [2].
A bankruptcy trial would safeguard Bayer from creditor claims. Typically, the company owner would forfeit their claims on the company in such proceedings. In recent years, multiple U.S. firms have filed bankruptcy to offload damages claims, a practice that is quite contentious in law and often instigates years of legal wrangling [2].
If successful, a Monsanto bankruptcy would close an economically draining chapter in Bayer's history. The $63 billion that Bayer shelled out for Monsanto has all but evaporated, with the total loss soaring even higher. When Bayer acquired Monsanto in June 2018, the company stood at a market value of around €100 billion. Today, that figure is down to around €25 billion [3].
So, keep your eyes on Bayer and its quest for glyphosate glory!
Related Terms:- Bayer- Monsanto- Glyphosate- Damages
- In light of the ongoing glyphosate lawsuits impacting Bayer's finances, there have been discussions about employing an industry-standard strategy often used by businesses facing similar situations - seeking relief through bankruptcy court for their subsidiaries, in this case, Monsanto, to protect against potential billions in damages.
- As conversations about settlements with claimants progress, it is essential to remember that the glyphosate controversy also extends to the business sector, with implications for various employment policies within Bayer and potentially other companies linked to the industry, finance, and business sectors.
