German Shareholders Sue Bayer over Stock Declines
In a departure from the accustomed geographical pattern of litigation against Bayer, investors based in Germany are suing the company for €2.2 billion ($2.5 billion). The shareholders are unhappy about the decline in the company’s share price on the back of hefty damage awards to US plaintiffs claiming that Monsanto’s non-selective herbicide Roundup caused their non-Hodgkin lymphoma.
Since its acquisition of the US agribusiness giant in 2016 for $63 billion, Bayer has continuously been embroiled in litigation, and its share price has repeatedly plunged to new lows before inching upward at times.
At the end of December, US law firm Tilp told the Reuters news agency that the lawsuit filed with the district court in Cologne covered claims from 320 investors, both institutional and retail. At mid-month it said more than 250 claimants were demanding 1 billion.
Tilp said the shareholders believe Bayer deceived them about the risks of consumer lawsuits pending against Monsanto. The company, however, has said the complaints have no basis, as it has complied with the law and its disclosure requirements throughout. Moreover, it carried out adequate due diligence in the acquisition of Monsanto.
Bayer hopes the US Supreme Court will hear its petition to rule on whether country’s federal law – which doesn’t require warning labels on agrochemicals packaging – preempt state laws mandating them.
In the case the Leverkusen group wants reviewed, a California court awarded $25 million in damages to a plaintiff on grounds that the Roundup packaging bought in the state should have carried such a label.
At the end of November 2021, the Supreme Court asked the administration of US president Joe Biden to advise on whether it should hear Bayer’s challenge. US solicitor general Elizabeth Prelogar has been tasked with filing a brief expressing the administration's views.
Author: Dede Williams, Freelance Journalist
