Bayer wins US legal victory against Roundup cancer claims; shares surge
Adds discussion of potential Supreme Court appeals in paragraphs 11-12
By Jonathan Stempel
Aug 16 (Reuters) -Bayer BAYGn.DE won a legal victory in its fight to limit liability from claims its Roundup weed killer causes cancer, as a U.S. appeals court said on Thursday that federal law shields the German company from a lawsuit by a Pennsylvania landscaper.
Shares of Bayer rose as much as 13.2% in Friday trading in Germany, on optimism the decision could eliminate much of its remaining legal liabilities for Roundup, made by its Monsanto unit.
The 3rd U.S. Circuit Court of Appeals in Philadelphia rejected plaintiff David Schaffner's claim that Monsanto violated state law by failing to put a cancer warning on the label for Roundup.
Schaffner was diagnosed in 2006 with a kind of cancer called non-Hodgkin's lymphoma, a common claim for Roundup plaintiffs.
He and his wife Theresa sued Bayer in 2019, partly over how his illness affected their relationship.
Chief Judge Michael Chagares wrote for a unanimous three-judge panel that the Federal Insecticide, Fungicide, and Rodenticide Act requires nationwide uniformity in pesticide labels, and prevented Pennsylvania from adding a cancer warning.
COURTS ARE DIVIDED
The decision conflicts with rulings from federal appeals courts in San Francisco and Atlanta in similar cases.
That raises the prospect the U.S. Supreme Court could resolve the split if the Schaffners appealed, perhaps as soon as next year. The court is not required to hear an appeal, but often accepts cases when lower courts disagree on the law.
Chip Becker, a lawyer for the Schaffners, said his clients were disappointed with the decision and were reviewing their legal options, and that federal law should not preempt their failure-to-warn claim.
In a research note, Barclays analysts said "this ruling was not expected," and Bayer believed a positive Supreme Court resolution "could bring glyphosate litigation to an end."
The Supreme Court declined to hear Bayer's appeal from the San Francisco decision. Bayer has until Sept. 5 to appeal the Atlanta decision, court records show.
Bayer said it was pleased with Thursday's decision and looked forward to presenting its arguments to the Supreme Court, saying that court should "settle this important issue of law."
The German company has long maintained that Roundup and its active ingredient glyphosate are safe.
SHARE SLUMP
Bayer has faced extensive litigation over Roundup, and through Thursday had seen its share price fall more than 73% since buying Monsanto for $63 billion in June 2018.
It settled much of the litigation for $10.9 billion in 2020, but still faces about 58,000 claims. Another 114,000 claims have been settled or rejected.
Though Bayer won 14 of 23 Roundup trials through July 23, one victory was overturned on appeal, and the losses saddled it with billions of dollars of damages awards.
The Schaffners settled with Bayer in September 2022, conditioned on Bayer being unable to convince courts that federal law preempted Pennsylvania's cancer warning.
Chagares said it did, and that this approach "best achieves Congress's stated aim of uniformity in pesticide labeling."
Roundup is among the most widely used weed killers in the United States. Bayer phased out sales for home use last year.
The case is Schaffner et al v Monsanto Corp, 3rd U.S. Circuit Court of Appeals, No. 22-3075.
Reporting by Jonathan Stempel in New York
Additional reporting by Brendan Pierson and Ludwig Burger
Editing by Jonathan Oatis and Frances Kerry
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.