By Patricia Weiss and Svea Herbst-Bayliss, Reuters
Bayer (BAYGn.DE) investor Union Investment called on Wednesday for the German company to reconsider its litigation strategy for glyphosate and a key U.S. trial lawyer signaled interest in re-starting settlement talks for thousands of Roundup weedkiller cases.
The two spoke out after Bayer lost its third consecutive trial over the weed killer’s alleged carcinogenic effects. More cases are scheduled to go to trial in U.S. courts in the coming months.
“It is a very different day today than it was after nine wins,” Jim Onder, who represents some 14,000 claimants, told Reuters.
A California jury on Tuesday found Bayer liable in a case brought by a man who claimed his cancer was due to exposure to the company’s glyphosate-based Roundup weed killer and ordered it to pay $332 million in damages.
The jury verdict was the third defeat for Bayer, after the company was ordered to pay a total of $175 million and $1.25 million in two other Roundup lawsuits.
Bayer said it would appeal all three verdicts.
Before the three consecutive losses, Bayer had won nine cases in a row.
After this week’s loss, investor nervousness is mounting about the company’s future litigation liabilities.
“Bayer’s strategy is to file lawsuits only when it believes it has a good chance of winning. This has worked nine times, however has now failed thrice” said Markus Manns, a fund manager at Union Investment.
“Bayer should review its strategy again now to avoid further negative headlines,” he added.
Union Investment has a 1.14% stake in Bayer, making it one of the 10 largest shareholders, according to LSEG data.
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