Shares of German life sciences giant Bayer plummeted nearly 7% on Wednesday, following a US court’s decision to review a case alleging harm from exposure to products of its Monsanto unit. The Washington Supreme Court’s move reignites concerns over the company’s ongoing legal battles, particularly those related to polychlorinated biphenyls (PCBs) exposure. This development comes on the heels of an appeals court’s May decision to overturn a $185 million award in the trial, citing flaws in the case.
Bayer’s stock took a hit, falling 6.76% by 12:45 pm London time, putting it on track for its worst performance since March. The company’s shares have already taken a 13% tumble this year, extending last year’s 30% decline. Bayer attributes the struggles to ongoing litigation over Monsanto and high net debt.
In a statement, Bayer expressed confidence that the Washington Court of Appeals’ decision would stand, citing three errors in the case, including a lack of scientific validity in the plaintiffs’ testimony regarding PCB exposure. The company argues that the claims relate to industrial materials that Monsanto voluntarily ceased manufacturing in 1977.
Bayer’s acquisition of US agrichemical-maker Monsanto in 2018 has led to a multitude of legal challenges in US courts, primarily centered around alleged negative health effects, including cancer, from exposure to Monsanto products like Roundup weed killer. To date, around 125,000 charges have been brought against the product, with over half resolved following a $10.9 billion settlement in 2020.
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