Bayer’s shares surged by 11% during morning trading after the firm declared a significant legal triumph in its ongoing conflict over Roundup, the well-known herbicide linked to allegations of causing cancer.
The German life sciences corporation experienced a rise in its stock as the 3rd U.S. Circuit Court of Appeals in Philadelphia ruled in Bayer’s favor in a lawsuit filed by David Schaffner. He alleged that Monsanto, which Bayer acquired in 2018, failed to include a cancer warning on the Roundup label. Schaffner, diagnosed with non-Hodgkin’s lymphoma in 2006, asserted that his exposure to the pesticide was through both his landscaping employment and personal use.
Chief Judge Michael Chagares, speaking on behalf of a three-judge panel, determined that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) takes priority over state regulations, indicating that a cancer warning on Roundup was unnecessary in this specific situation.
Schaffner’s lawyer, Chip Becker, conveyed his dissatisfaction with the ruling, contending that federal guidelines should not supersede state statutes regarding failure-to-warn allegations. Becker noted that the Schaffners would contemplate their legal alternatives following the verdict.
Bayer has been embroiled in legal battles over Roundup, with approximately 165,000 claims lodged against the product in the U.S., and around 54,000 cases still awaiting resolution as of August, subsequent to a $10.9 billion settlement in 2020.
The firm highlighted that the ruling in Philadelphia contrasts with decisions from other federal appellate courts, leading Bayer to advocate for the U.S. Supreme Court to address the matter. In a statement, Bayer remarked, “This ruling on federal preemption has resulted in a divide among the federal appellate courts, and the U.S. Supreme Court should investigate this critical legal issue.”
This verdict represents a significant step forward in Bayer’s legal strategies as they navigate the complex legal framework surrounding Roundup.
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