Bayer is planning to settle some of the many lawsuits against its Roundup weedkiller in Missouri. If this does not work, the company might file for bankruptcy for its Monsanto unit, according to a report by the Wall Street Journal.
The German pharmaceutical and biotech company has already paid about $10 billion to resolve claims that Roundup, which contains glyphosate, causes cancer. However, around 67,000 cases are still waiting to be resolved. Bayer has set aside $5.9 billion to cover these legal costs.
Bayer has hired advisers from the law firm Latham & Watkins and the consulting firm AlixPartners to explore their options. A bankruptcy filing under Chapter 11 by Monsanto would temporarily stop the lawsuits. It would also allow Bayer to handle Roundup liabilities through the bankruptcy court.
Reuters could not immediately verify this report. Bayer, Latham & Watkins, and AlixPartners did not respond to requests for comment.
Last month, Bayer asked the U.S. Supreme Court to limit claims connecting Roundup to cancer. The company hopes this will reduce the risk of paying billions in damages. A decision from the court could come as soon as next month.
Bayer bought Roundup when it acquired Monsanto, a U.S. agrochemical company, for $63 billion in 2018.
Since then, Bayer has faced many challenges. These include ongoing glyphosate lawsuits, a setback last year with a promising experimental drug, weak agricultural markets, and pressure from some investors to sell or separate parts of the business.
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