German pharmaceutical and agrochemical giant Bayer (Bayer) on Tuesday proposed a US$7.25 billion settlement to resolve current and future U.S. lawsuits claiming that its Roundup herbicide causes cancer. The move is intended to curb mounting litigation after years of legal battles over the glyphosate-based product, which Bayer acquired through its 2018 takeover of Monsanto.
The proposed settlement, which requires approval from a Missouri court where Monsanto was founded, would provide capped annual payments over a period of up to 21 years, gradually declining over time. Lead law firms representing plaintiffs have endorsed the plan, which comes in addition to roughly $10 billion already paid to settle about 130,000 cases out of court.
Chief Executive Bill Anderson said the plan “provides an essential path out of the litigation uncertainty and enables us to devote our full attention to furthering the innovations that lie at the core of our mission: Health for all, Hunger for none.” He added that the proposal, combined with Bayer’s ongoing U.S. Supreme Court case, is part of a multi-pronged strategy to contain the litigation. A Supreme Court decision is expected by June.
Plaintiffs allege that glyphosate, the active ingredient in Roundup, causes non-Hodgkin’s lymphoma (non-Hodgkin’s lymphoma), a type of cancer affecting the lymphatic system. Bayer has consistently denied the allegations, emphasizing that major regulators worldwide—including the U.S. Environmental Protection Agency and EU authorities—have concluded that glyphosate-based herbicides can be used safely and are not carcinogenic.
Analysts say a favorable Supreme Court ruling could result in the dismissal of thousands of cases and significantly limit future claims. In May 2025, reports indicated that Bayer was considering bankruptcy protection for its Monsanto subsidiary if broader settlement plans failed. The company has stressed that its proposed settlement does not constitute any admission of liability or wrongdoing.
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The Roundup litigation highlights the challenges facing multinational corporations in managing legacy product liabilities while balancing regulatory compliance and investor expectations. Bayer’s settlement plan, if approved, would provide long-term legal certainty and allow the company to focus on its global operations and research-driven agenda, including health and agricultural innovations.
With litigation costs and reputational risks mounting, Bayer’s US$7.25 billion proposal marks one of the largest corporate settlements in U.S. chemical and agro-industry history, illustrating the high stakes of product liability claims in the modern legal and regulatory environment.
Bayer, the German multinational pharmaceutical and agrochemical company, acquired Monsanto in 2018, inheriting its flagship herbicide, Roundup, which contains the active ingredient glyphosate. Since 2018, Bayer has faced thousands of lawsuits in the United States claiming that glyphosate exposure causes non-Hodgkin’s lymphoma (non-Hodgkin’s lymphoma).
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The legal challenges stem from allegations that Roundup products caused cancer in users, leading to significant damages claims. Bayer has consistently denied liability, citing reviews by regulatory authorities including the U.S. Environmental Protection Agency and the European Union, which concluded that glyphosate-based herbicides are not carcinogenic when used according to label instructions.
To manage the ongoing litigation, Bayer has already spent approximately $10 billion in out-of-court settlements for roughly 130,000 cases. The company is now proposing a US$7.25 billion class settlement to resolve current and future claims, spread over a period of up to 21 years, with capped annual payments that decrease over time. The settlement still requires court approval in Missouri, where Monsanto was founded.
Bayer’s litigation strategy is closely linked to an ongoing U.S. Supreme Court case challenging Roundup-related claims. A favorable ruling could dismiss thousands of lawsuits, significantly reducing Bayer’s legal exposure and potentially eliminating the need for bankruptcy protection for its Monsanto subsidiary. Analysts view the proposed settlement and Supreme Court proceedings as central to Bayer’s broader plan to contain litigation risks and provide regulatory clarity for farmers and the agrochemical industry.
The Roundup cases highlight the challenges multinational companies face in managing legacy product liabilities, balancing legal risk, regulatory compliance, and shareholder interests while continuing to invest in innovation and global operations.
