Monsanto's Weedkiller Payout Slashed to $400 Million From $2.25 Billion

By Ben Glickman

A court has reduced the amount Bayer-owned Monsanto must pay in a recent case linked to Roundup by about 82%, or nearly $1.9 billion, easing the latest cost in the company's drawn-out legal battle related to the weedkiller.

Monsanto will now be required to pay $350 million in punitive damages and just over $50 million in compensatory damages, according to court documents released on Tuesday. The company was originally ordered earlier this year to pay $2.25 billion in damages by a Philadelphia court.

Monsanto said on Tuesday it would seek an appeal in the Superior Court of Pennsylvania and that it disagreed with the court's ruling on the liability verdict.

The jury in January sided with the plaintiff, who alleged that he developed cancer from exposure to Roundup, a weedkiller owned by Monsanto. Bayer has maintained that Roundup and its main ingredient, glyphosate, is safe to use, pointing to opinions from regulators that determine the compound isn't a risk cancer risk.

Monsanto said Tuesday that it stood behind Roundup and "the overwhelming weight of scientific research and assessments by leading health regulators and scientists."

Bayer has been plagued by a number of lawsuits related to Roundup since its $63 billion deal to acquire Monsanto in 2018. The company lost two cases late last year with damages totalling over $2 billion.

The reduced payout comes as the pharmaceutical and agricultural conglomerate is looking to slash its debt, address ongoing lawsuits and revamp its pharmaceutical drug pipeline. The company in March said it wasn't pursuing a split into separate units, an option preferred by some investors.

Monsanto said that it had favorable outcomes in 14 of the last 20 trials, including the last four, and has resolved the majority of claims.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

June 04, 2024 18:44 ET (22:44 GMT)

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