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Bayer Shares Fall After Jury Awards $289M In Roundup Lawsuit

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Bayer Shares Fall After Jury Awards $289M In Roundup Lawsuit
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Hundreds of consumers have claimed the most popular weed killer on the market causes cancer, according to a report by CNN. Monsanto, the company behind Roundup, was acquired by German pharmaceutical company Bayer AG (ADR) (OTC: BAYRY) in June.

What Happened

On Friday, a California jury found that Monsanto failed to warn consumers of potential cancer risks from its weed killers. The lawsuit began with a school groundskeeper, Dewayne Johnson , who was diagnosed with terminal cancer that he argued was caused by Roundup.

The company has repeatedly insisted glyphosate is safe. The World Health Organization said otherwise in 2015, stating the herbicide is "probably carcinogenic to humans," according to The Guardian

The court ordered Monsanto to pay $289 million in damages to Johnson.

"Today's decision does not change the fact that more than 800 scientific studies and reviews ... support the fact that glyphosate does not cause cancer," Monsanto Vice President Scott Partridge said in a statement after the verdict was returned. 

Why It’s Important

Since the news was released on Friday, Bayer shares have dropped 10 percent, amounting to the most severe company decline in years. Bayer shares were down 10.55 percent at $23.79 at the time of publicaion Monday. 

What’s Next

This decision will likely inspire other future defendants who claim a link between their health and Monsanto's products. The chemical company said it will appeal Friday's court decision. 

Related Links: 

Argus Downgrades Monsanto After DOJ Blesses Bayer Merger

Bayer CEO Predicts 'Great Value And Growth' In Company After Monsanto Acquisition

Posted-In: cnn MonsantoNews Legal General Best of Benzinga

 

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