Monsanto Announces Proposed Nationwide Roundup™ Class Settlement
Today, Monsanto announced a proposed U.S. nationwide class settlement aimed at resolving current and future claims related to Roundup™ exposure and alleged Non-Hodgkin lymphoma (NHL) injuries. The settlement is part of a long-term claims program designed to provide closure to plaintiffs while managing litigation risk. Leading plaintiff law firms representing the class filed a motion for preliminary approval of the settlement in the Circuit Court of the City of St. Louis, Missouri.
The proposed class settlement, along with the ongoing Supreme Court review of the Durnell case, forms a dual strategy that is both independent and mutually reinforcing, providing Monsanto with a framework to contain Roundup™ litigation effectively.
CEO Statement on Settlement Strategy
Bill Anderson, CEO of Bayer, stated:
The proposed class settlement agreement, together with the Supreme Court case, provides an essential path out of litigation uncertainty and enables us to focus on our mission: Health for all, Hunger for none. This litigation highlights the need for clear regulatory guidance from the Supreme Court. Both the settlement and the Supreme Court case are necessary to achieve the strongest, most timely resolution to this litigation.
Settlement Funding and Payment Structure
Monsanto plans to fund the class settlement through declining capped annual payments over 21 years, totaling up to $7.25 billion, pending court approval. This long-term payment structure allows Monsanto to manage current and future claims with greater certainty and control over litigation costs.
In addition to this settlement, Monsanto has reached confidential agreements for other Roundup™ (glyphosate) cases and previously resolved eight remaining PCB verdicts related to the Sky Valley Education Center (SVEC) in Washington, also on confidential terms. Monsanto has also settled PCB environmental cases with the U.S. states of Illinois and West Virginia.
Financial Impact
These settlements, together with litigation costs, will increase Bayer’s provision and liabilities for litigation from €7.8 billion (including €6.5 billion for glyphosate) as of September 30, 2025, to €11.8 billion (including €9.6 billion for glyphosate). Bayer estimates litigation-related payouts of approximately €5 billion in 2026, which may result in negative free cash flow for the year.
To reflect the settlements in its financial statements, Bayer is postponing the announcement of its 2025 year-end financial results and 2026 guidance to March 4. Financing for these settlements, alongside certain bond maturities, will initially come from an $8 billion bank loan facility, with ultimate plans to use senior bonds and instruments recognized for equity credit by rating agencies, without requiring an authorized capital increase.
No Admission of Liability
Monsanto emphasizes that these settlements are solely intended to contain litigation. They do not constitute any admission of liability or wrongdoing. Regulatory authorities worldwide, including the U.S. Environmental Protection Agency (EPA) and EU regulators, continue to affirm that glyphosate-based herbicides can be used safely and are not considered carcinogenic. These herbicides remain critical tools for farmers to produce affordable food globally.
Multi-Pronged Strategy Beyond Settlement
In addition to the settlements, Monsanto continues to pursue other strategic actions to mitigate litigation risk and provide regulatory clarity. These measures include supporting legislation at the state and federal level and engaging in regulatory actions. Clear regulations are vital to ensuring the availability of current and future agricultural innovations, which are crucial for farmers and the U.S. food system.
Supreme Court Review and Settlement Interconnection
The settlements follow the U.S. Supreme Court’s decision to grant review of the Durnell case. The Court will address whether state claims based on failure-to-warn theories are preempted by federal law. The expectation of Supreme Court review was a key factor enabling the settlement.
The Supreme Court case remains unaffected by the settlement and is critical for resolving pending damage awards not covered by the settlement. A favorable ruling could largely prevent current and future claims based on state label-warning theories, including pending appeals and class opt-outs, providing essential regulatory clarity for companies and farmers alike.
Settlement Scope
The proposed class settlement is structured to resolve all claims related to Roundup™ exposure and NHL, regardless of the legal theory. This ensures that claims potentially remaining after the Supreme Court decision are included, avoiding prolonged litigation and facilitating faster resolution for plaintiffs and the company.
About Bayer
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. In line with its mission, “Health for all, Hunger for none,” the company’s products and services are designed to help people and the planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population. Bayer is committed to driving sustainable development and generating a positive impact with its businesses.
At the same time, the Group aims to increase its earning power and create value through innovation and growth. The Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2024, the Group employed around 93,000 people and had sales of 46.6 billion euros. R&D expenses amounted to 6.2 billion euros. For more information, go to www.bayer.com.
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