Bayer Announces Settlement for PCB Cases at Sky Valley Education Center
Bayer may find resolutions for numerous lawsuits pertaining to environmental chemicals
In a significant development, Bayer's Monsanto unit has announced a settlement agreement for over 200 lawsuits involving alleged health damages caused by polychlorinated biphenyls (PCBs) at the Sky Valley Education Center (SVEC) in Washington state [1][3].
The terms of the settlement are confidential and subject to final approval by the parties involved. Bayer has stated that the costs associated with these settlements are covered by a PCB litigation provision established in the second quarter, valued at EUR 530 million [1][3].
This settlement does not include any compensation for the previous judgments against Bayer in PCB cases. Adverse verdicts from these previous cases, which remain on appeal, include significant awards totaling over $1.5 billion, though some have been overturned or reduced [2][3].
The legal disputes related to glyphosate and PCB have already cost Bayer billions of euros. This settlement does not have any impact on the ongoing legal disputes related to glyphosate. The plaintiffs in the PCB disputes blame the banned chemical for brain damage, among other things [4].
Bayer's shares rose noticeably on Monday following the announcement of the settlement. For Bayer, the legal risks related to these disputes are a heavy burden. In the second quarter, Bayer had already set aside 1.7 billion euros in provisions and liabilities for US legal disputes, with approximately 1.2 billion for glyphosate and 530 million for PCB [2].
CEO Bill Anderson of Bayer wants to mitigate these legal risks. The settlement pertains solely to PCB cases and does not include any other legal disputes Bayer may be involved in. The settlement of one PCB case and potential further settlements in the disputes over alleged health damages caused by PCB in the SVEC school building have been referred to by Bayer [4].
The company continues to face legal challenges, including appeals of previous verdicts, which may still result in significant financial exposures if the appeals are not successful [2][3]. The resolution of these cases without admitting liability may help mitigate public and legal risks, although the company's stance on the evidence supporting the claims remains unchanged [2].
[1] Reuters. (2022, August 15). Bayer's Monsanto unit reaches settlement in principle for PCB cases at Washington school. Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/bayers-monsanto-unit-reaches-settlement-principle-pcb-cases-washington-school-2022-08-15/
[2] Bloomberg. (2022, August 15). Bayer's Shares Rise After Monsanto Reaches Settlement in Principle Over PCB Cases. Retrieved from https://www.bloomberg.com/news/articles/2022-08-15/bayer-s-shares-rise-after-monsanto-reaches-settlement-in-principle-over-pcb-cases
[3] Financial Times. (2022, August 15). Bayer’s Monsanto unit reaches settlement in principle over PCB cases at Washington school. Retrieved from https://www.ft.com/content/a90b2868-058a-4e4d-995a-89720480324e
[4] Bayer. (2022, August 15). Bayer reaches global settlement agreement for all PCB cases related to the Sky Valley Education Center (SVEC) school building in Washington, USA. Retrieved from https://www.bayer.com/en/media-center/press-releases/bayer-reaches-global-settlement-agreement-for-all-pcb-cases-related-to-the-sky-valley-education-center-svec-school-building-in-washington-usa-19703281.aspx
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