Bayer’s Monsanto confirms Roundup class settlement pact

Bayer’s (BAYRY) Monsanto announced a proposed U.S. nationwide class settlement designed to resolve current and future Roundup claims alleging Non-Hodgkin lymphoma injuries through a long-term claims program. Leading plaintiff law firms representing the class filed a motion Tuesday seeking preliminary approval of the settlement in the Circuit Court of the City of St. Louis, Missouri. The proposed class combined with Supreme Court review in the Durnell case are independently necessary and mutually reinforcing steps in the company’s multipronged strategy designed to significantly contain the Roundup litigation, the company said. To fund the class, Monsanto will make declining capped annual payments for up to 21 years totaling up to $7.25B, following court approval. The long-term payment stream will provide the company with both greater certainty and control regarding its litigation costs for current claims and potential future claimants. Separately, Monsanto also has reached agreements to settle certain other Roundup cases on confidential terms. Additionally, earlier this year Monsanto settled eight remaining PCB verdicts related to the Sky Valley Education Center in the state of Washington on confidential terms. Monsanto also previously resolved PCB environmental cases with the U.S. states of Illinois and West Virginia. In total, and subject to a final audit, these resolutions including litigation costs will lead to an increase of the provision and liabilities for litigation from EUR 7.8B, including EUR 6.5B for glyphosate as of September 30, 2025, to EUR 11.8B including EUR 9.6B for glyphosate. Based on a first estimate of all litigation related payouts of approximately EUR 5B in 2026, Bayer expects a negative free cash flow for this year. To reflect the settlement agreements in the financial statements, Bayer is shifting its announcement of 2025 year-end financial results and 2026 guidance to March 4.