Bayer’s stock jumped by 11% in the morning session following the company’s announcement of a significant legal victory in its ongoing battle over Roundup, the prominent herbicide associated with claims of causing cancer.
The German life sciences company saw an increase in its share prices after the 3rd U.S. Circuit Court of Appeals in Philadelphia ruled in Bayer’s favor in a lawsuit brought by David Schaffner. He claimed that Monsanto, which Bayer purchased in 2018, neglected to include a cancer warning on the Roundup label. Diagnosed with non-Hodgkin’s lymphoma in 2006, Schaffner indicated that his exposure to the herbicide stemmed from both his landscaping job and personal use.
Chief Judge Michael Chagares, speaking on behalf of a panel of three judges, concluded that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) prevails over state laws, thereby determining that a cancer warning on Roundup was not required in this instance.
Schaffner’s attorney, Chip Becker, expressed disappointment with the verdict, arguing that federal regulations should not overshadow state laws concerning failure-to-warn claims. Becker stated that the Schaffners would consider their legal options following the ruling.
Bayer has found itself embroiled in legal challenges regarding Roundup, with around 165,000 lawsuits filed against the product in the U.S., and roughly 54,000 cases still pending resolution as of August, following a $10.9 billion settlement reached in 2020.
The company pointed out that the ruling in Philadelphia differs from decisions made by other federal appellate courts, prompting Bayer to call on the U.S. Supreme Court to address the issue. In a statement, Bayer maintained, “This ruling on federal preemption has created a split among the federal appellate courts, and the U.S. Supreme Court should examine this crucial legal matter.”
This event signifies a notable progress in Bayer’s legal maneuvers as they navigate the intricate legal landscape involving Roundup.
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