Bayer in free fall after glyphosate damages lawsuit in u.s
Bayer, the chemical giant from Germany, is currently in crisis and in a free fall. This is due to a US$2 billion damages lawsuit filed by a couple from California.
The lawsuit relates to the weedkiller glyphosate, which was produced by subsidiary Monsanto before it was acquired by Bayer. The couple accuses the company of using glyphosate to cause cancer in them.
Despite Bayer’s insistence that glyphosate is safe, the jury has decided that the company is to blame for the cancer caused by the drug. This has triggered a domino effect on Bayer’s shares, which have fallen by more than 40 percent.
The case once again shows how important it is for companies to consider the potential impact of their products on consumer health. Bayer now faces a major challenge in how to respond to this setback and regain consumer confidence.
The causes of action against Bayer
Bayer is under significant pressure after a lawsuit for damages was filed against the company in the U.S. The lawsuit refers to the herbicide glyphosate, which is alleged to cause cancer. Plaintiffs allege that glyphosate in Roundup, a derivative of Monsanto that Bayer acquired in 2018, caused cancer.
The lawsuit comes at a time when the company is already struggling with a takeover of Monsanto, which has led to a massive debt load. The company now also faces high claims for damages that could potentially threaten its economic stability.
But the problem goes far beyond financial risk. The lawsuit has serious implications for the company’s image and could lead to a loss of consumer confidence. Many people are concerned about the use of glyphosate in food production, and the lawsuit against Bayer further exacerbates those concerns.
- Increased financial risk
- Image loss
- Lack of consumer confidence
Reactions from politicians and industry
The lawsuit for damages against Bayer over the controversial weedkiller glyphosate has massive implications not only for the company itself, but also for politics and business. Politicians from various parties have welcomed the U.S. court’s decision, calling for a ban on glyphosate in Germany.
Industry associations are also expressing concern about the consequences of the lawsuit for agriculture and the trade in crop protection products. Some companies have already announced that they will stop or at least reduce glyphosate production.
However, there are also voices criticizing the lawsuit as excessive and undifferentiated, warning of negative effects on innovation and progress in agriculture.
- Bayer: the company itself expresses disappointment with the ruling and announces it will appeal. At the same time, Bayer insists that glyphosate is safe and already approved in many countries around the world.
- Glyphosate ban: Politicians from various parties are calling for a ban on the weedkiller in Germany. The Greens and the Left have been campaigning for this for some time, and the CDU and SPD are now also following suit. A final decision is still pending.
- Industry associations: the German Agricultural Industry Association, the German Farmers’ Association, and the German Farmers’ Association Association and the German Plant Breeders’ Association express concern about the impact of the lawsuit on agriculture and the trade in crop protection products. BUND, on the other hand, welcomes the ruling.