Credit: Unsplash
Bayer’s stock experienced an 11% surge in morning trading after the company announced a significant legal win in its ongoing litigation over Roundup, the popular weed killer linked to cancer claims.
The German life sciences giant saw its shares rise as the 3rd U.S. Circuit Court of Appeals in Philadelphia ruled in Bayer’s favor in a lawsuit filed by David Schaffner, who alleged that Monsanto, acquired by Bayer in 2018, failed to include a cancer warning on Roundup’s label. Schaffner, diagnosed with non-Hodgkin’s lymphoma in 2006, claimed exposure to the herbicide both through his landscaping work and private use.
Chief Judge Michael Chagares, writing for a three-judge panel, determined that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) supersedes state law requirements, thus negating the need for a cancer warning on Roundup in this instance.
Schaffner’s lawyer, Chip Becker, expressed dissatisfaction with the decision, arguing that federal law should not override state law regarding failure-to-warn claims. Becker noted that the Schaffners would review their legal options following the ruling.
Bayer has been embroiled in legal battles over Roundup, with approximately 165,000 claims filed against the product in the U.S., and roughly 54,000 cases remaining as of August, following a $10.9 billion settlement in 2020.
The company highlighted that the Philadelphia ruling contrasts with decisions from other federal appellate courts, and Bayer is calling for the U.S. Supreme Court to address the matter. Bayer stated, “This decision on federal preemption creates a circuit split among the federal appellate courts and necessitates a review by the U.S. Supreme Court to settle this important issue of law.”
The outcome represents a significant development in Bayer’s legal strategy as it continues to navigate the complex litigation landscape surrounding Roundup.
