Bayer proposes payment plan of more than $7B to settle Roundup cancer lawsuits
Bayer CEO Bill Anderson joins ‘Claman Countdown’ to provide insight into Roundup’s growing legal battle, and what it means for consumers, farmers and America’s food security.
Bayer is proposing a $7.25 billion plan to settle thousands of lawsuits alleging its Roundup weed killer caused cancer — a major effort to cap years of mounting legal exposure that will soon weigh on the company’s finances.
“This is a choice of speed and control of what has been a long legal battle,” CEO Bill Anderson said Tuesday, describing the settlement as an important step in reducing the long-running lawsuits related to the herbicide.
Bayer said it is increasing its total liabilities to about $12 billion and expects to pay about $6 billion in legal fees in 2026 alone – enough to push free cash flow into the negative this year.
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“Under the proposed class settlement agreement, the largest annual payout will be funded this year,” said CFO Wolfgang Nickl. “Therefore, we expect negative free cash flow in 2026.”
Bayer’s Roundup is displayed for sale in Encinitas, California, US, June 26, 2017. (REUTERS/Mike Blake/File Photo) (REUTERS/Mike Blake/File Photo / Reuters Images)
To finance this decision, the company obtained an $8 billion credit facility.
The German pharmaceutical and agricultural giant said its Monsanto unit has applied for a nationwide phase-out settlement in St.
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This program will fund payments in up to 21 annual payments. People exposed to Roundup before mid-February 2026 who have already been diagnosed – or who receive a diagnosis within 16 years of being approved by a court – may be eligible. Payments will be determined by a tiered system based on exposure and medical factors, where some people may receive as much as $198,000 or more.
Bayer AG CEO Bill Anderson. (Henning Kaiser/photo alliance via Getty Images)
Bayer faces about 65,000 plaintiffs in US courts. The settlement requires a judge’s approval and sufficient participation from the plaintiffs. The company can go if many leave.
“We would expect that most – almost all – of the plaintiffs will come forward,” Anderson said. “If it doesn’t work that way, then we don’t have a deal in the end.”
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It denies wrongdoing and maintains that regulators, including the EPA, have found glyphosate to be safe when used as directed.
Separately, the US Supreme Court will hear a case that could limit future cases by deciding whether federal labeling laws preempt failure-to-warn claims — a decision that could reshape the company’s long-term legal risk.
Bottles of Monsanto’s Roundup are seen for sale at a grocery store in Glendale, California, on June 19, 2018. (Robyn Beck/AFP via Getty Images)
“A ruling in our favor would address cases not covered by this settlement, including the most serious pending cases,” Anderson said, adding that the high court’s review is important to the company’s broader litigation plans.
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For consumers and farmers, Roundup is still widely available. But for Bayer, the proposed settlement and the pending high court ruling represent a significant effort to contain litigation costs and stabilize its balance sheet after years of uncertainty.
