Bayer AG agreed to settle U.S. lawsuits claiming that its widely-used weed killer Roundup caused cancer for as much as US$10.9 billion after more than a year of talks, resolving litigation that has hit the company's share price.
The German drugs and pesticides maker has come to terms with about 75 per cent of the current Roundup plaintiffs, involving about 125,000 filed and unfiled claims overall, it said in a statement on Wednesday (Jun 24).
The settled cases account for about 95 per cent of those currently set for trial, it added.
The Roundup settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end, Bayer Chief Executive Werner Baumann said.
The company added it will make a payment of US$8.8-US$9.6 billion to resolve the current Roundup litigation - including an allowance expected to cover unresolved claims - and US$1.25 billion to support a separate class agreement to address potential future litigation.