Bayer Mediator: $8 Billion Roundup Settlement Report 'Pure Fiction' -- 4th Update
August 09 2019 - 2:32PM
Dow Jones News
By William Boston, Nathan Allen and Sara Randazzo
German chemicals and pharmaceutical giant Bayer AG (BAYN.XE)
hasn't proposed a $8 billion settlement for its Roundup weedkiller
lawsuits, a mediator appointed to Bayer's case said Friday.
A report published by Bloomberg sent Bayer's shares soaring as
much as 11% earlier in the day as investors welcomed the prospect
that the thousands of lawsuits alleging Bayer's Roundup weedkillers
cause cancer could be put to rest.
But Kenneth Feinberg, a well-known mediator appointed by a
federal judge to try to resolve the cases, said that Bayer,
Monsanto and the plaintiffs lawyers haven't yet begun to discuss
dollars. "It's pure fiction," he said of the Bloomberg report.
A Bloomberg spokeswoman said, "We stand by our story."
Bayer declined to comment on Mr. Feinberg's statement or the
report that it was willing to pay up to $8 billion to settle the
Roundup lawsuits.
Mr. Feinberg said that the mediation process will continue into
next month. "We'll see where we are at the end of September.
There's nothing absolutely nothing to it," he said.
At 1453 GMT shares were trading 1.8% higher at 64.06 euros
($71.76), having hit a high of EUR70.04 in the session.
Since acquiring Roundup maker Monsanto Co. last year for $63
billion, Bayer's value has plunged as thousands of plaintiffs have
filed suits claiming exposure to the weedkillers caused them to
develop cancer.
In its most recent quarterly earnings report, Bayer said the
number of plaintiffs filing suits against it had risen by 5,000,
bringing the total to 18,400. The company has lost several jury
trials in the U.S. and analysts have been struggling to gauge the
extent of the company's liabilities.
In its most recent quarterly earnings report, Bayer said that
the number of plaintiffs filing suits against it had risen by
5,000, bringing the total to 18,400. The company has consistently
defended Roundup's safety record and said the claims against it
don't stand up to scientific scrutiny.
In June, Bayer said it would seek outside legal help and form a
dedicated supervisory-board committee to oversee its legal
strategy.
Bernstein analyst Gunther Zechmann said Bayer's shares could
rise as much as 30% if the company secures an $8 billion
settlement. However, he noted plaintiffs are likely to demand more
than the $400,000 per person implied by such a deal.
Write to William Boston at william.boston@wsj.com, Sara Randazzo
at sara.randazzo@wsj.com and Nathan Allen at
nathan.allen@dowjones.com
(END) Dow Jones Newswires
August 09, 2019 14:17 ET (18:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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