Bayer Mulling Bankruptcy for Monsanto to Shield from Glyphosate Lawsuits' Tide
Bayer Contemplates Monsanto Bankruptcy as a Means to Discharge Glyphosate Lawsuit Claimants
Hanging on to Monsanto's neck like a lead anchor, the glyphosate lawsuits keep dragging Bayer down. With tens of thousands of lawsuits looming over the weedkiller glyphosate, the financial quagmire remains uncertain. Apparently, Bayer isn't ruling out a drastic move.
Sources whisper that Bayer is contemplating filing for bankruptcy for its U.S. subsidiary, Monsanto. The Wall Street Journal reported this, hearing it from reliable insiders. This move is said to be a Plan B, should a settlement with thousands of alleged glyphosate victims in the U.S. fail.
Glyphosate, marketed in the U.S. as Roundup, is under the microscope for possible links to cancer. However, Bayer flatly disagrees. Regardless, Bayer has already coughed up a whopping $10 billion (approximately €8.9 billion) in glyphosate-related settlements. Some 67,000 cases are still hanging in the balance, for which the company has set aside $5.9 billion.
A recent court ruling in Georgia compelled Bayer to hand over $2 billion to a plaintiff who blamed Roundup for his cancer. Bayer points to an appeal as its defense. Most of the other cases are stacked up in a Missouri court, where Bayer is attempting to hammer out a settlement.
Should this Missouri settlement crumble and the glyphosate lawsuits' financial liability remain shrouded, a bankruptcy for Monsanto could be on the table, according to the Wall Street Journal[1][2][3]. The newspaper reveals that Bayer has already roped in a law firm and a consulting firm to weigh the pros and cons of this plan. Alas, Bayer remained tight-lipped about the entire ordeal.
A U.S. bankruptcy filing would give Bayer a shield from its creditors' claims. Typically, the company's owner might wave goodbye to their stake in the firm. In modern times, multiple U.S. companies have gone bankrupt to escape damage claims, a practice shrouded in controversy[1].
If this strategy pays off, Bayer could kiss goodbye to the loss-making Monsanto chapter. The eye-watering $63 billion Bayer shelled out for Monsanto in 2018 has dwindled to a pittance. The total damage is even higher: When Bayer sealed the deal in June 2018, the company was valued at a cool €100 billion on the stock market. Today, that number stands at a mere €25 billion.
[1] ntv.de
- Bayer
- Monsanto
- Glyphosate
- Bankruptcy
- Damage Claims
- Cancer Lawsuits
- In an effort to shield themselves from the overwhelming financial liability of glyphosate lawsuits, Bayer is reportedly considering filing for bankruptcy for its subsidiary, Monsanto, a move that could potentially relieve them from damage claims related to the weedkiller.
- If successful, this bankruptcy strategy could serve as a means for Bayer to cut loose from the loss-making Monsanto chapter, which has significantly diminished in value since the $63 billion acquisition in 2018.
