Bayer has proposed a $7.25 billion settlement to address thousands of lawsuits claiming its Roundup weedkiller caused non-Hodgkin lymphoma, aiming to resolve current and future claims through a long-term compensation program.
The agreement, announced in February, would establish capped annual payments over up to 21 years and requires judicial approval. It targets individuals exposed to Roundup before mid-February 2026 who have been diagnosed with cancer or received a diagnosis within 16 years of court approval.
Monsanto, a subsidiary of Bayer, filed the proposed nationwide class action settlement in St. Louis. Eligible claimants include those who used the product at home or work, with payouts determined by a tiered system considering exposure levels and medical factors. Some could receive up to $198,000 or more.
“This is a choice for speed and containment over a protracted legal battle,” CEO Bill Anderson said Tuesday, Fox Business reported.
Bayer faces about 65,000 plaintiffs in U.S. courts. The deal needs sufficient claimant participation, and the company can withdraw if too many opt out.
“We would anticipate that the vast majority – almost all – the plaintiffs will opt in,” Anderson said, per Fox. “If it doesn’t work that way, then we don’t have a deal in the end.”
In a written statement, plaintiffs’ attorney Christopher Seeger called it “a historic step toward bringing justice and financial relief to thousands of people across the country who developed non-Hodgkin lymphoma after exposure to Roundup,” The Hill reported.
More than 40,000 people could be covered, Seeger told reporters.
The company maintains that glyphosate, Roundup’s key ingredient, is safe when used as directed, citing regulators like the EPA, and admits no wrongdoing.
Bill Anderson said the settlement provides an “essential path out of the litigation uncertainty and enables us to devote our full attention to furthering the innovations that lie at the core of our mission: Health for all, Hunger for none,” according to The Hill.
Bayer is boosting its litigation reserves to nearly $12 billion, anticipating $6 billion in payouts this year, which will result in negative free cash flow for 2026. It has arranged an $8 billion loan facility to fund the plan.
“Under the proposed class settlement agreement, the largest of the annual payments would be funded this year,” CFO Wolfgang Nickl said, Fox reported. “Therefore, we are expecting a negative free cash flow in 2026.”
Settlement amounts are projected to range from $5,000 to $250,000, averaging $150,000 per plaintiff, based on factors like exposure duration, claim evidence, negligence proof, injury severity, monetary and emotional damages, and the plaintiff’s health or age.
Claims administrators apply a settlement matrix assigning points to these elements, with higher values yielding larger payouts.
“Many lawsuits have resulted in substantial settlements, highlighting the seriousness of the issue and the responsibility of companies producing glyphosate-based products,” product liability attorney Jonathan Rosenfeld told Drugwatch.
This follows a 2020 $10 billion settlement for non-Hodgkin lymphoma claims, which a Bayer official described as short-term and limited compared to the new proposal.
Separately, the U.S. Supreme Court has agreed to review whether federal pesticide labeling laws preempt certain state claims, including some tied to Roundup — a case Bayer requested, and the Trump administration backed. A favorable ruling could limit future suits and address cases outside the settlement.
“A decision in our favor would address cases not covered by the settlement, including significant adverse pending judgments,” Anderson said, noting the review’s importance to Bayer’s strategy, Fox reported.
The outcome could affect pesticides broadly. For Bayer, the settlement and potential high court decision are key to curbing legal costs after years of uncertainty, while Roundup stays on the market for consumers and farmers.
