Bayer AG on Wednesday announced it will spend up to $12.1 billion to resolve U.S. lawsuits involving its widely used weedkiller Roundup as well as other suits involving use of PCB in water and its dicamba herbicide, which allegedly caused widespread damage by drifting onto Missouri peach farms.
In a statement, Bayer said it will make a total payment of $10.1 billion to $10.9 billion to resolve current and address potential future Roundup litigation. It said it would also pay up to $400 million to settle cases involving the weedkiller dicamba having drifted onto plants that weren’t bred to resist it, killing them.
The Leverkusen-based company, which has its U.S. headquarters in Creve Coeur, said the Roundup settlement would “bring closure to approximately 75%” of the current 125,000 filed and unfiled claims.
It said the agreement is subject to approval by Judge Vince Chhabria of the U.S. District Court for the Northern District of California.
A further payment of up to $820 million will be made to settle “most” claims for exposure to PCB, a highly carcinogenic substance, that Monsanto produced until 1977 and which has been found in U.S. waters
Bayer said it would start making payments this year and these would be financed from existing liquidity, future income, proceeds from the sale of its animal health business and the issuance of additional bonds.