The U.S. Supreme Court is set to hear arguments in a pivotal case for Bayer AG, which seeks to curtail the massive legal liability it faces from claims that its Roundup weedkiller causes cancer, a battle that could cost the German company billions.
"A ruling for Monsanto would reach far beyond pesticides, stripping states of their authority to protect their own citizens and closing the courthouse doors on people injured by dangerous products across industries," Matthew Wessler, an attorney at Gupta Wessler who has argued several cases before the high court, told CNN.
The case, which will be argued on April 27, centers on an appeal by Bayer of a $1.25 million verdict awarded to John Durnell, a Missouri man who developed non-Hodgkin lymphoma after years of using Roundup. Bayer, which acquired Roundup-maker Monsanto in 2018, faces claims from approximately 65,000 plaintiffs who allege the weedkiller is responsible for their cancer.
The core legal question is whether federal law, which governs the labeling of pesticides, overrides state laws that might require a cancer warning. Bayer argues that because the U.S. Environmental Protection Agency (EPA) has consistently found glyphosate, Roundup's active ingredient, not to be carcinogenic and does not require a cancer warning, the company cannot be penalized under state law for failing to provide one. The Trump administration had previously supported this position.
The $7.25 Billion Question
The legal fight unfolds as Bayer attempts to finalize a $7.25 billion class-action settlement designed to resolve the majority of existing and potential future lawsuits. A Missouri state court granted initial approval to the deal in March, with a final hearing set for July. The uncertainty of the Supreme Court's ruling, expected by the end of June, could influence whether plaintiffs decide to accept the settlement terms or risk their chances in court.
"I don’t trust the Supreme Court in this situation," said Howard Kornblue, a former Roundup user with non-Hodgkin lymphoma who supports the settlement. "The possibility of coming away with zero (compensation) is not good."
A "Devastating Risk"
Bayer and major agricultural groups have warned of severe consequences if the lawsuits are allowed to proceed. The company has suggested it may have to stop selling glyphosate to U.S. farmers, a move the American Farm Bureau Federation claims would pose a "devastating risk to America’s food supply.” Glyphosate, introduced in the 1970s, became an integral and low-cost tool for weed control in American farming.
While the EPA has maintained that glyphosate is safe, the World Health Organization's International Agency for Research on Cancer classified it as "probably carcinogenic to humans" in 2015, which triggered the initial wave of litigation. Further complicating Monsanto's position, a 2000 scientific review often cited to prove the chemical's safety was retracted in December over authors' conflicts of interest with the company. For its part, Bayer has stopped using glyphosate in Roundup products sold for residential use but maintains the ingredient is safe.
This article is for informational purposes only and does not constitute investment advice.
