OpinionBayer glyphosate lawsuits

Almost as if it were Christmas

Pharmaceutical and agrochemical company Bayer may be at a turning point in connection with the multi billion dollar glyphosate lawsuits. A case review is now proceeding to the US Supreme Court.

Almost as if it were Christmas

Bayer has reached a significant milestone in addressing the multi-billion dollar glyphosate lawsuits. The US Solicitor General, who represents the US government before the Supreme Court, has endorsed Bayer's request to review a glyphosate ruling. This support, both legal and substantive, gives Bayer a crucial ally in its fight. Although the US Supreme Court has yet to issue a decision, the likelihood of curbing the US litigation industry's ability to attract further glyphosate plaintiffs has substantially increased.

While the Supreme Court is only reviewing a specific case, the underlying issue is one of legal principle: Can individual US states override federal law through their own judicial rulings? The US Environmental Protection Agency (EPA) has classified glyphosate as non-carcinogenic, and thus, has banned the inclusion of a warning label on the product. In contrast, plaintiffs who claim glyphosate caused their cancer were awarded damages due to the absence of such a label.

Premature to celebrate

There remains a significant amount of uncertainty, and even if the Supreme Court rules in Bayer's favour, it will not automatically resolve all ongoing lawsuits. Nevertheless, a favourable ruling would lay the foundation for bringing this legal battle to a close in the foreseeable future. Since the first damaging ruling in mid-2018, Bayer has been forced to employ an army of lawyers to manage the wave of litigation.

The legal disputes, which Bayer inherited through its acquisition of Monsanto, have also drained considerable management resources and incurred enormous financial costs. To date, Bayer has paid over 10 billion euros in settlement fees, with provisions amounting to 6.5 billion euros by the end of September – just for the glyphosate litigation.

Considering Bayer’s recent experiences with the US legal system, this latest legal development may feel like an early Christmas gift. However, it’s far too soon to pop the champagne. Bayer CEO Bill Anderson has pledged to significantly reduce legal risks by the end of 2026, and while the chances of a resolution are improving, the final outcome remains uncertain.