Bayer glyphosate trial: Financial expert warns of settlements worth billions

Bayer glyphosate trial: Financial expert warns of settlements worth billions

According to a report by www.faz.net, the agricultural and pharmaceutical company Bayer is under pressure after a record fine in the glyphosate trials in the USA. Investors reacted with concern and shares fell by more than five percent to their lowest level in almost two months. This article outlines the situation and developments at Bayer amid the ongoing glyphosate trials.

The company previously suffered a defeat in the glyphosate litigation and has to pay a fine of $2.25 billion. This represented the highest amount ever imposed on the group. According to financial experts, Bayer is likely to face difficult decisions. Fund manager Markus Manns from Union Investment emphasizes that Bayer cannot get the glyphosate issue under control and that newspaper advertisements from potential victims have increased massively. In addition, more US lawyers could jump on the bandwagon as a result of the case won.

The financial impact is significant as Bayer has already had to pay some settlements regarding the glyphosate lawsuits. Provisions for settlements of existing and future glyphosate lawsuits amounted to $6.4 billion at the end of 2022. The group structure is also under scrutiny and significant staff cuts have been announced.

Bayer has stopped selling products containing glyphosate to US private customers to ward off further future lawsuits. Despite the defeats, the company has no plans to change its litigation strategy. Bayer always rejects the allegations against glyphosate, while authorities worldwide classify the substance as not carcinogenic.

As a result of the record fine in the glyphosate trials, the pressure on Bayer will increase. The financial provisions will have a significant impact on the company's balance sheet and the uncertainty could have a negative impact on the share price and investor confidence. The increasing pressure from US lawyers could also lead to further legal and financial burdens for Bayer. It remains to be seen how the company will respond to these challenges and how this will impact the market and the financial industry as a whole.