German based drugs and pesticides manufacturer Bayer AG (ETR: BAYN) has agreed to pay up to $10.9 billion to settle 100,000 cases filed by U.S residents. A majority of this cases accuse the company of causing cancer to many through it’s widely used weedkiller Roundup.
In a statement issued on June 25, the pharmaceutical company announced having reached agreements with 75% of 125,000 cases. Some of the cases are filed while others exist as unfiled claims.
Bayer says it inherited some of these claims brought forward after it acquired Monsanto back in 2008 in a deal worth $63 billion.
The CEO of Bayer, Werner Baumann, said 95% of cases which were set for trial against the company are linked to Roundup and other glyphosate-based weedkillers.
“The Roundup settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end. Unfortunately, we have to pay an awful lot of money for a product which is perfectly regulated,” added the CEO.
Bayer says it will release $8.8 billion to $9.6 billion as payments to settle cases revolving around Roundup, the amount will also include an allowance aimed at covering unresolved claims.
Additionally, the company will disburse an extra $1.25 billion to support a different class agreement set to address any potential litigation in the future.
Last year, Ken Feinberg was appointed settlement mediator by a federal judge applauds the company for taking a wise decision to settle the claims rather than pushing the blame to complainants.
“Bayer wisely decided to settle the litigation rather than roll the dice in American court,” said Feinberg. Nonetheless, Bayer refused to accept any wrongdoings.
Despite the fact that 25,000 cases still remain unsettled, Feinberg said there will be no more trials as they will be settled in the near future.