Bayer AG is pursuing a new multibillion-dollar settlement over claims that its Roundup weedkiller causes cancer—and is preparing to place its U.S. subsidiary Monsanto into bankruptcy if talks with tort plaintiffs collapse, according to people familiar with the matter.
The German pharmaceutical and agricultural conglomerate, which acquired Monsanto for $63 billion in 2018, has been mired in litigation ever since. More than 54,000 plaintiffs remain active in U.S. courts, alleging that exposure to Roundup, which contains glyphosate, caused them or their loved ones to develop non-Hodgkin lymphoma and other cancers.
Bayer is reportedly working with legal advisors from Sullivan & Cromwell and financial consultants from Lazard to structure a revised global settlement. The company has floated a package in the range of $6 billion to $8 billion, people briefed on the discussions said.
However, if negotiations fail to gain broad support among plaintiffs’ lawyers and judges, Bayer is prepared to file Chapter 11 bankruptcy for Monsanto, a legal maneuver that could pause litigation and channel claims into a court-supervised resolution process.
“We remain committed to resolving Roundup litigation in a fair and efficient manner,” a Bayer spokesperson said. “All options remain on the table to protect our business and stakeholders.”
The renewed push for settlement follows a wave of courtroom defeats for Bayer in recent months. Since late 2023, juries in Missouri, Pennsylvania, and California have awarded over $4 billion in damages to individual plaintiffs, including a landmark $2.25 billion verdict in January—the largest to date in Roundup litigation.
Though Bayer has won several cases on appeal and maintains that glyphosate is safe when used as directed, the inconsistency in jury outcomes has fueled investor anxiety and legal uncertainty.
The litigation risk has become a drag on Bayer’s stock, which has lost more than 35% of its value since 2022. Shareholders have urged management to put the Roundup saga behind them, with some pushing for a spin-off or restructuring of Bayer’s crop science division, which includes Monsanto.
Filing Monsanto for bankruptcy would allow Bayer to isolate Roundup-related liabilities without exposing the broader group to Chapter 11 proceedings. The company has studied similar strategies used by Johnson & Johnson (over talc) and 3M (over earplugs), though both efforts faced major legal setbacks in federal appeals courts.
Bayer would likely seek to establish a litigation trust under Section 524(g) of the U.S. bankruptcy code, channeling all current and future glyphosate claims into a single compensation fund.
Plaintiffs’ attorneys are already split on the idea. Some say bankruptcy could force a more orderly and equitable distribution of funds, while others argue it would suppress jury awards and deny victims their day in court.
“Monsanto used to be the world’s most powerful agribusiness,” said Brent Wisner, a leading plaintiff’s attorney. “Now it’s trying to hide behind bankruptcy to escape accountability.”
Bayer still generates robust cash flow from its pharmaceutical and agricultural segments, but the legal overhang has narrowed strategic flexibility. The company faces a €39 billion debt load and has ruled out further dividend hikes or major acquisitions until the litigation is resolved.
CEO Bill Anderson, who took over in 2023, has pledged to streamline operations and improve transparency. He has also hinted that the company may consider selling or spinning off Monsanto once Roundup liabilities are addressed.
“The Roundup issue is not just a legal matter—it’s a reputational and strategic challenge,” said Johannes Thormählen, an analyst at DZ Bank. “A clean break may be the only path forward.”
Bayer continues to cite regulatory findings that glyphosate is not carcinogenic when used properly. The U.S. Environmental Protection Agency (EPA), European Food Safety Authority (EFSA), and other regulators have reaffirmed the herbicide’s safety.
But the International Agency for Research on Cancer (IARC), a unit of the World Health Organization, classified glyphosate as “probably carcinogenic” in 2015, triggering the first wave of lawsuits and billions in damages.
Bayer announced in 2021 that it would replace glyphosate in its residential products by 2023. However, commercial versions of Roundup—used on millions of acres of corn, soybeans, and cotton—remain widely sold.
If Bayer proceeds with the bankruptcy plan, Monsanto could file as early as this summer. The filing would pause all current litigation under the automatic stay provisions of Chapter 11, while the company negotiates a trust structure with creditors and plaintiffs’ counsel.
Courts would then need to determine whether Monsanto’s bankruptcy was filed in good faith and whether claimants can be compelled to accept trust payouts instead of jury trials.
Meanwhile, Bayer’s board faces intensifying scrutiny from shareholders and policymakers in Germany, where the Monsanto acquisition has become a cautionary tale of deal-driven risk.
Bayer is racing against time—and public pressure—to settle thousands of Roundup cancer claims. If talks collapse, a bankruptcy filing for Monsanto may be the company’s last resort to contain a legal wildfire that has already cost billions.
Roundup Litigation Snapshot
- Plaintiffs Remaining: ~54,000
- Largest Verdict: $2.25 billion (CA, Jan 2025)
- Total Legal Costs to Date: ~$13 billion
- Current Settlement Talks: $6–8 billion range
- Bankruptcy Option: Chapter 11 for Monsanto only
- Lead Legal Counsel: Sullivan & Cromwell (Bayer), Kirkland & Ellis (creditors)
- Potential Filing Date: Summer 2025 (tentative)
