Bayer may Settle Roundup Cases out of Court
Hints that Bayer could be willing to settle with plaintiffs in Roundup lawsuits out of court and not wait for the outcome of its appeals against unfavorable judgments in the Roundup lawsuits so far and were being spotted and commented on last week as the German group publicly acknowledged the toll the lawsuits – over 13,000 to date – are taking on its share price.
Following a full-day session on Jun. 26, Bayer’s supervisory board said it had resolved to “address” the litigation and the chances for mediation.
An eight-member committee consisting equally of shareholder and employee representatives will be established to “monitor” the situation, consult with the managing board and make recommendations on strategy including trial tactics and mediation, on an ongoing basis. This, Bayer hopes, will add “fresh and independent perspectives.”
Additionally, the group has named US lawyer John H. Beisner to advise management on matters related to the glyphosate litigation, including trial tactics and mediation, on an ongoing basis. The appointment is intended to add “fresh and independent perspectives.”
Beisner, who currently heads the Mass Tort, Insurance and Consumer Litigation department of law firm Skadden in Washington, DC, is touted as a “recognized expert” in product liability litigation, having served in “key leadership roles” in several high-profile product liability cases, including successful defenses and settlements on behalf of large multinational companies.
Investors welcomed the moves as a sign that things are moving forward. The Bayer share rose 8.7% on the day of the announcement, its biggest daily gain in a decade, according to Reuters. Analysts interpreted the board’s remarks as a sign that a settlement could be on the way.
Analysts for Bernstein – who had earlier criticized Bayer’s perceived foot-dragging tactics – noted that Beisner previously represented Merck & Co. in its Vioxx litigation and negotiated a settlement with plaintiffs who had claimed the drug caused their heart attacks.
In an out-of-court settlement, Merck agreed to pay $830 million to resolve the claims, plus an additional amount for approved attorneys’ fees and expenses.
The comparison is skewed, however, by the fact that Merck had previously pulled the drug from the market, whereas Bayer has stressed that the glyphosate-containing herbicide will remain an important part of its portfolio.
