After a court ruling against it, Bayer’s shares fell drastically due to Roundup legal issues

    by VT Markets
    /
    Mar 25, 2025

    Bayer’s shares fell sharply after a Georgia jury ordered the company to pay $2.1 billion in damages related to its Roundup weed killer product. The plaintiff, John Barnes, claimed Roundup caused his non-Hodgkin’s lymphoma, leading to a total award of $65 million in compensatory damages and $2 billion in punitive damages.

    Overall, Bayer faces around 181,000 claims regarding Roundup, with over $4 billion in damages awarded in previous trials. Following the verdict, Bayer’s stock price dropped approximately 7%, trading just above $22, although it remains 16% up for the year.

    Bayer has appealed the court’s decision, arguing that state-based claims are overridden by federal law. The company has successfully reduced prior verdicts and remains dedicated to defending its product’s safety. It also plans to appeal to the U.S. Supreme Court, which could potentially end future litigation associated with Roundup.

    A harsh verdict from the Georgia jury has sent Bayer’s shares tumbling as the firm now faces yet another costly legal blow over its Roundup weed killer. Barnes successfully argued that exposure to the herbicide led to his non-Hodgkin’s lymphoma, securing a verdict that includes a hefty sum in punitive damages—by far the largest amount issued in a Roundup-related case. This loss feeds into a wider legal battle, with thousands of claims still pending.

    The broader picture remains troubling for the company. With 181,000 legal claims tied to the weed killer, previous cases have already resulted in damages exceeding $4 billion. Investors reacted swiftly, dragging Bayer’s stock down by about 7%, leaving it just above $22 per share. While the share price has still gained 16% this year, the latest courtroom loss reinforces doubts about the company’s ability to contain legal risks.

    Bayer has wasted no time in lodging an appeal, stating that federal regulations should take precedence over individual state claims. Looking at past cases, it has managed to reduce prior penalties through appeals, a pattern it will certainly attempt to repeat here. However, this time the sheer scale of the jury-awarded sum raises questions about whether prior legal strategies will work as effectively.

    The firm has also signalled its intent to escalate the legal fight to the U.S. Supreme Court, where it hopes to settle the bigger argument once and for all. A favourable decision there could potentially limit future claims, easing uncertainty for investors. Until then, however, heavy legal expenses and the overhang of further courtroom battles remain unavoidable.

    Such developments deserve attention in the coming weeks. The extent to which Bayer can claw back some of these damages, or at least prevent further losses, will matter greatly. If it fails to gain traction in appeals, the financial strain could worsen. There is also the broader concern that more juries may follow Georgia’s lead, pushing penalties even higher.

    Market participants should also assess how quickly the company can push its case before higher courts. Any delays could deepen volatility, especially if additional jury verdicts arrive in the meantime. Much will depend on whether Bayer’s legal team can convince appellate judges to place limits on individual jury awards—something it has done successfully before, but with mixed results in Roundup-related cases.

    For now, sharp movements in Bayer’s stock are a given. The question is whether the company can provide any reassuring signals before more investors begin to reassess their positions. With the company’s appeal process still in its early stages, courtroom outcomes remain the driver of short-term price movements. The stakes are as high as ever.

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