Bayer Faces Massive Compensation: $78 Million Ruling Shocks Market, Roundup Herbicide Sparks Cancer Panic

Bayer AG (BAYGn.DE) has been ordered to pay up to $78 million in damages to a Pennsylvania man who claimed he developed a deadly form of cancer from using Bayer's Roundup herbicide. The verdict was reached Thursday by a state court jury in Philadelphia. Bayer had previously won a string of victories in the court, winning 14 of the 20 previous cases against Roundup. However, the company has also been hit with several major judgments, including a $1.56 billion judgment in November, which was later reduced to $611 million, and a $2.25 billion judgment in January, which was later reduced to $400 million.

Tom Kline and Jason Itkin, lawyers for plaintiffs William Melissen and his wife, Margaret, sharply criticized Bayer in a statement, saying the company "has a disregard for people's safety, They acted recklessly "and" have yet to learn from these proceedings and change their ways."

The jury awarded William Melison $3 million in compensatory damages and up to $75 million in punitive damages. In a later statement, Bayer said it disagreed with the jury's verdict because it conflicted with "overwhelming scientific evidence and the consensus of global regulators and their scientific assessments."

Bayer said it was confident of reducing the amount of punitive damages during the appeal process. According to the U.S. Supreme Court, punitive damages generally cannot exceed nine times the amount of compensatory damages. The Melissons, who filed their lawsuit in 2021, claim that William, like the other Roundup plaintiffs, developed a form of non-Hodgkin's lymphoma from glyphosate exposure. Glyphosate was the active ingredient in Roundup products for home use until it was discontinued last year.

Melison said he used the product at home and in the workplace from 1992 to 2020, until he was diagnosed with cancer. He claims glyphosate and other chemicals in Roundup caused his illness. Bayer insists glyphosate does not cause cancer and that the lawsuits are without merit. As part of its $63 billion acquisition of agrochemical company Monsanto in 2018, Bayer acquired the Roundup brand.

The German company settled most of the outstanding lawsuits in 2020, paying $10.9 billion, but still faces about 58,000 similar claims, according to its latest financial report.