Bayer is seeking a settlement for lawsuits related to the Roundup weedkiller from its U.S. subsidiary Monsonto. He envisages the bankruptcy of the latter if the settlement negotiations for the Roundup-related litigation were to fail. The company is working with restructuring advisors and is planning to eventually use Chapter 11 proceedings to stay proceedings, reorganize and settle Roundup-related liabilities. Since acquiring Monsanto in 2018, Bayer has faced thousands of lawsuits alleging a link between glyphosate (the main ingredient in Roundup) and cancer. Bayer has already paid out about $10 billion in compensation. Bayer also diluted its shares to raise an additional $9 billion to cover potential litigation costs and separated its glyphosate-related business from its other agricultural business. The company is seeking legislative and judicial support, including intervention from the U.S. Supreme Court, to limit future lawsuits.
Source : wsj
