Categories Earnings, Markets, Other Industries

Bayer loses $14 billion following Monsanto verdict

German pharmaceutical giant Bayer AG saw its stock tank 12% on Monday after its newly acquired US-based business unit Monsanto was asked to pay $289.2 million in a lawsuit over its weed killer products. Bayer lost as much as $14 billion in value during the sell-off on Monday. The lawsuit alleged that Monsanto’s Roundup and Ranger Pro products contained carcinogenic elements and the company failed to disclose these risks to consumers.

The Missouri-based agro-chemical company has been blamed for publishing false information about the cancer-causing ingredient glyphosate, and the company is now facing several other lawsuits related to its Roundup product. Bayer, however, claims the verdict is not consistent with scientific evidence and can be appealed against.

Although Bayer’s involvement in the case is restricted, it is likely to trouble the German firm, which bought Monsanto for over $60 billion in June this year. Following the success of this trial, other similar lawsuits could pile up and this would not bode well for Bayer, which had to struggle to get the Monsanto acquisition approved in the first place.

On Friday, a judge in California ordered Monsanto to pay $289 million to Dewayne Johnson, a groundsman at a school in Benicia, who is suffering from terminal cancer that was said to be caused by the regular use of the company’s Ranger Pro product.

Several products sold across the US contain glyphosate, which also received renewed approvals for its use in the EU despite opposition. Some agencies have declared that the chemical could be carcinogenic while others have maintained that it is safe.

Also Read:  Spotify (SPOT) Earnings: 2Q20 Key Numbers

Most Popular

Yelp Q2 earnings: All key figures

Yelp (NYSE: YELP) reported second-quarter financial results after the regular trading hours on Thursday. The results were better than what the street had anticipated. YELP shares rose 4% immediately following the

Infographic: Uber (UBER) Q2 loss narrows; revenue beats

Uber Technologies (NYSE: UBER) reported its second-quarter 2020 financial results after the regular trading hours on Thursday. Revenues exceeded the estimates, while the bottom-line missed. Shares of the ride-hailing company

TMobile (TMUS) Q2 revenue up 61%; results beat Street view

TMobile US Inc.  (NASDAQ: TMUS) on Thursday announced financial results for the second quarter of 2020, reporting a 61% increase in revenues aided by strong customer growth. The results also

Tags

Top