Bayer Mulling Over Monsanto Bankruptcy to Evade Glyphosate Lawsuits Fallout
Bayer might be pursuing bankruptcy for Monsanto to eliminate glyphosate litigants.
In the aftermath of a disastrous Monsanto takeover, Bayer finds itself drowning in lawsuits over the herbicide glyphosate. With the financial risk hanging precariously in the balance, rumors abound that Bayer is cooking up a Plan B: filing for bankruptcy to offload their American subsidiary and potentially evade billions in damages.
Attention has been drawn to the situation by a report in the Wall Street Journal, citing anonymous sources privy to the plan. According to this report, Bayer is considering a bankruptcy filing for Monsanto as a last resort, should efforts to settle thousands of glyphosate-related claims in the U.S. go awry.
The chemical glyphosate, marketed under the brand Roundup in the U.S., has been linked to cancer. Bayer denies this claim, pointing to U.S. and other authorities who do not classify glyphosate as carcinogenic. Regardless, Bayer has already transferred a hefty sum of around $10 billion to settle existing cases, with over 67,000 outstanding claims for which they've allocated a further $5.9 billion.
Recently, a court in Georgia ordered Bayer to pay more than $2 billion to a plaintiff who claimed glyphosate caused their cancer. Bayer has lodged an appeal against this decision, as most of the remaining cases lie in a court in Missouri, where Bayer is seeking a settlement.
If Bayer does press ahead with the bankruptcy plan, the proceeding would offer protection from creditor claims. This legal strategy has been employed by numerous U.S. companies to escape damage claims, a move that has sparked controversy and lengthy legal battles. If successful, the move would bring an end to the loss-making Monsanto chapter for Bayer. The original $63 billion they paid for the U.S. rival has evaporated, leaving only approximately $25 billion on the table today.
- Bayer
- Monsanto
- Glyphosate
- Damages
Interesting Facts:
- Bayer's strategic plan is multifaceted, combining a Supreme Court appeal and an administrative claims process to tackle the mountain of glyphosate-related lawsuits.
- If the Supreme Court rules in Bayer's favor, it would establish a significant legal precedent, impacting future product liability litigation nationwide.
- Chapter 11 bankruptcy, if executed, would allow for the reorganization of Monsanto, addressing its liabilities from glyphosate claims in a structured court-supervised process.
Source: ntv.de
In light of the ongoing glyphosate lawsuits against Bayer, the company has devised a strategy to tackle the cascade of claims. This strategy includes both a Supreme Court appeal and a formal claims process, aiming to set a precedent for future product liability litigation.
Moreover, if the situation deteriorates, Bayer may opt for Chapter 11 bankruptcy for Monsanto, a move designed to reorganize its subsidiary in a structured court-supervised process, addressing the liabilities from glyphosate claims within the industry, finance, and business sectors.
