Bayer’s stock went up by 11% during morning trading after the company announced a major legal victory in its ongoing battle over Roundup, the popular weed killer associated with claims of causing cancer.
The German life sciences company saw an increase in its shares as the 3rd U.S. Circuit Court of Appeals in Philadelphia ruled in favor of Bayer in a lawsuit brought by David Schaffner. He claimed that Monsanto, acquired by Bayer in 2018, did not include a cancer warning on the Roundup label. Schaffner, who was diagnosed with non-Hodgkin’s lymphoma in 2006, stated that his exposure to the herbicide was through his landscaping work and personal use.
Chief Judge Michael Chagares, in a statement for a three-judge panel, concluded that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) takes precedence over state laws, meaning that a cancer warning on Roundup was not necessary in this particular case.
Schaffner’s attorney, Chip Becker, expressed disappointment with the ruling, arguing that federal regulations should not override state laws concerning failure-to-warn claims. Becker mentioned that the Schaffners would consider their legal options following the decision.
Bayer has been entangled in legal disputes related to Roundup, with about 165,000 claims filed against the product in the U.S., and around 54,000 cases still pending as of August, after a $10.9 billion settlement in 2020.
The company emphasized that the ruling in Philadelphia differs from decisions made by other federal appellate courts, prompting Bayer to urge the U.S. Supreme Court to address the issue. In a statement, Bayer said, “This ruling on federal preemption has created a split among the federal appellate courts, and the U.S. Supreme Court should examine this crucial legal matter.”
This outcome signifies a crucial advancement in Bayer’s legal tactics as they deal with the intricate legal landscape surrounding Roundup.
Image Source: Poetra.RH / Shutterstock
