A Missouri state judge on Wednesday granted preliminary approval to Bayer’s proposed $7.25 billion settlement aimed at resolving thousands of lawsuits alleging that its Roundup weedkiller causes cancer, according to Reuters.
Judge Timothy Boyer of the St. Louis City Circuit Court signed off on the initial stage of the agreement between the German pharmaceutical and agrochemical group and attorneys seeking to represent a nationwide class of plaintiffs. The claimants allege that exposure to Roundup led them to develop non-Hodgkin’s lymphoma.
The proposed settlement seeks to address most of the approximately 65,000 remaining cases pending in state and federal courts. Judge Boyer rejected a request from other lawyers who had asked for more time to review the deal before any approval.
Although he described the proposed payout as “significant,” Boyer said he will consider objections from affected individuals before making a final decision. A hearing on final approval is scheduled for July.
Bayer acquired Roundup as part of its $63 billion purchase of Monsanto in 2018. The company has consistently argued that decades of scientific research show glyphosate, Roundup’s active ingredient, does not cause cancer. The settlement does not require Bayer to admit liability or wrongdoing.
Settlement fund and opt-out window
Preliminary approval activates a key provision of the agreement. Bayer must deposit $500 million into a settlement fund within 10 days. The money will cover administrative expenses, including notifying class members and managing claims.
The ruling also opens a formal window for class members to object to the settlement terms or opt out of the agreement. Court records show that Bayer retains the right to withdraw from the deal if too many plaintiffs choose not to participate.
Chief Executive Bill Anderson previously told investors that the company expects the “vast majority” of claimants to join the settlement. In a statement, Bayer’s general counsel Bill Dodero said the company remains confident that the “long-term and well-financed class settlement plan” merits final court approval.
The settlement, announced in February, marked a significant step in Bayer’s effort to bring legal certainty to years of costly litigation over Roundup. However, the July hearing will determine whether the agreement ultimately withstands scrutiny from the court and affected claimants.
