UBS Managing Director Jason Katz and Interactive Brokers Strategist Steve Sosnick discuss how investors can navigate the stock market’s conflicting messages in The Craman Countdown. I’ll clarify.
Bayer has avoided thousands of lawsuits related to the herbicide Roundup, with about 113,000 of the 167,000 cases resolved and 54,000 remaining in some states, with no compensation available. It’s getting even more expensive.
The product contains glyphosate, a chemical that plaintiffs claim causes cancer. Earlier this year, a jury awarded $2.25 billion in damages to a man who developed cancer after using the product.
Monsanto, the maker of Roundup, was acquired. Bayer in 2018 The $63 billion acquisition was the company’s largest acquisition in its history. This makes this giant industry the only U.S. supplier of glyphosate, an important crop protection agent from insects and weeds that is considered safe by the Environmental Protection Agency. Still, costly legal trials continue to take place in the courts.
Chief Executive Bill Anderson, who took over in June, is now tasked with managing the potential for a sharp rise in costs.
Yellen says tough talks are needed with China
Bayer Roundup on sale in Encinitas, California on June 26, 2017. (Reuters/Mike Blake/File Photo/Reuters Photo)
“Another big challenge is litigation, which is a huge strain not only on our finances but also on our ability to invest in better medicines and solutions to feed the world,” Anderson said with investors. , at its March financial results conference, at the same time reiterating the company’s commitment. “Protect yourself”.
Approximately $16 billion has been set aside for litigation, officials said.
Bayer shares have fallen 22% this year through Friday.
Bayer’s legal problems could give China, which already produces 70% of the crop, an even bigger advantage, according to the Agriculture Department.
A harvest combine tractor, left, cuts through rows of corn before it is loaded onto a truck in Charlotte, Vermont, Sept. 29, 2022. (Robert Nickelsburg/Getty Images/Getty Images)
Former US Ambassador Kip Thom said: “The ongoing litigation, the discussions with Roundup, glyphosate, etc., how this is costing companies like Bayer and not moving money into research and development. I’m concerned,” he said. united nations The Food and Agriculture Administration under the Trump administration told FOX Business.
”I worry that we are moving too much of the supply chains used to produce food, fiber, energy, and many other products from agriculture. I don’t want to leave China anymore. All they have to do is turn on the kill switch. That’s it! So given what’s going on here with glyphosate, it’s probably going to go offshore sometime soon. We are already seeing it today. ”
Tom delivered a similar message to MPs in March.
“Americans need to understand that our national security depends on us. food security; Americans cannot take our nation’s food system for granted,” he told lawmakers.
Bayer has avoided thousands of lawsuits related to the herbicide Roundup, and the payouts are getting even higher. (license/image)
meanwhile Bayer lawsuit Although the problems are far from over, the company has had some success on its defense recently. Last week, a Missouri judge reduced a $1.56 billion settlement to three individuals to $611 million, and the company said it would continue to appeal, Reuters reported.
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Bayer did not respond to FOX Business’ request for comment.
