$2 billion Roundup jury verdict drives down Bayer shares as company seeks law change

A Georgia jury verdict ordering Bayer AG to pay over $2 billion to a man suffering from cancer he blamed on his use of Roundup weed killer comes as that state’s governor weighs whether to sign into law a measure that would effectively bar such cases from going to trial in the future.

Friday’s verdict rocked Bayer investors, driving down the German company’s shares more than 8% on Monday. The jury found that Bayer, which bought Roundup maker Monsanto in 2018, failed to properly warn users of years of scientific evidence that exposure to Roundup could cause cancer, awarding plaintiff John Barnes $2 billion in punitive damages and $65 million in compensatory damages.

Barnes developed non-Hodgkin lymphoma (NHL) after using Roundup to spray weeds around his home in Dalton, Georgia, from 1999 to 2019, purchasing the herbicide from Home Depot stores. He was diagnosed with NHL in 2020 and has endured multiple rounds of treatment and one recurrence of the disease, though he currently is in remission, according to his lawyers. He is one of more than 100,000 people in the US who have filed lawsuits alleging they developed cancer due to use of Monsanto’s weed killers.

Barnes, a father, grandfather and former Marine, testified in the three-week trial that the disease and treatment have taken a lasting toll. 

“With this cancer …  there is no cure,” Barnes testified. He cried as he described persistent fear that his time with his family may be limited. “Every day is worry, not just for me but my family.” 

The jury’s large punitive award was motivated both by scientific evidence that demonstrates a causal connection between Roundup and its active ingredient glyphosate, and an abundance of evidence showing Monsanto actively worked for decades to manipulate the scientific record on Roundup risks, said Barnes’ attorney Kyle Findley.

“The verdict shows the community is not going to tolerate these types of backroom dealings … manipulating science and scientific journals to promote their own views of their products,” said Findley.

Monsanto knew “for years and years” that Roundup use could cause cancer, but failed to reflect that knowledge on Roundup labels, or take other steps to protect customers, he said.

 Though some of the scientific research linking glyphosate to cancer dates to the 1980s, there is also recent research that reinforces the connection, including a 2023 study by scientists affiliated with the National Institutes of Health that found people exposed to  glyphosate have biomarkers in their urine linked to the development of cancer and other diseases.  

Bayer said it will appeal the verdict, and expects even if it fails to overturn the jury award, the amount will be significantly reduced, as has been the case with other large jury verdicts in Roundup cases. The nationwide litigation has so far cost Bayer billions of dollars in settlements and jury verdicts favoring plaintiffs, and more cases are pending. Bayer said as of January approximately 114,000 claims out of 181,000 claims have been resolved or “deemed to be ineligible.” 

“We disagree with the jury’s verdict, as it conflicts with the overwhelming weight of scientific evidence and the consensus of regulatory bodies and their scientific assessments worldwide,” the company said in a statement. “Our track record demonstrates that we win when plaintiffs’ attorneys and their experts are not allowed to misrepresent the worldwide regulatory and scientific assessments that continue to support the products’ safety. We continue to stand fully behind the safety of Roundup products – critical tools that farmers rely on to produce affordable food and feed the world.”

Bayer said it is hopeful that Georgia Gov. Brian Kemp will soon sign new legislation recently passed by state lawmakers that would impact cases such as Barnes. Bayer is the chief architect of the Georgia law and similar measures in other states that would in effect shield companies from lawsuits brought by people claiming they suffered health problems due to their use of pesticides. Bayer and allies are promoting passages of the laws with a deluge of advertising. 

The company says the pursuit of the legislative changes is necessary to protect its “important investments” and to ensure farmers don’t lose access to Roundup, and it hopes other states will “follow Georgia’s lead in supporting farmers.”

The new laws would bar people from suing pesticide manufacturers for failing to warn them of health risks, as long as the product labels are approved by the Environmental Protection Agency. Opponents say the legislation will rob farmers and others who use pesticides from holding companies accountable in court if their pesticide products cause disease or injury.