Bayer Faces Setbacks as €7.25 Billion Roundup Settlement Raises Questions
Bayer's shares tumbled by 9.2% following the announcement of a $7.25 billion settlement for cancer lawsuits linked to its Roundup weedkiller. Investors are questioning the settlement's decisiveness as uncertainties remain regarding the required court approvals and potential Supreme Court rulings on the case's merits.
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- Germany
Bayer's share value plunged by up to 9.2% on Wednesday, erasing gains made the previous day, as investors voiced skepticism about a proposed $7.25 billion settlement to resolve cancer lawsuits related to its Roundup weedkiller. The agreement aims to settle tens of thousands of current and future liability claims, stemming from Bayer's acquisition of Monsanto in 2018.
The stock saw a 7.3% increase on Tuesday, which was overturned by an 8% drop later. JPMorgan analysts acknowledged the settlement as a step forward, yet pointed out the lack of clarity on the number of plaintiffs required to opt in and their willingness to accept the terms.
While court approval and opt-outs remain significant considerations, analysts like Oddo BHF's Stephan Wulf stressed that several legal challenges must be addressed before finalizing the settlement. Additionally, the pending decision from the U.S. Supreme Court on the basic legal merits further complicates the situation.
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