By Louis Goss, Dow Jones
Bayer AG shares surged up to 12% Friday on news it had won a key victory in a U.S. court that should limit its liability in relation to a series of lawsuits over claims that the popular weed killer Roundup causes cancer.
The Third Circuit, based in Philadelphia, ruled in Bayer’s favor in a case brought forward by Pennsylvania landscaper David Schappner, who claimed he developed non-Hodgkin lymphoma after using Roundup.
The court said that U.S. federal laws supersede Pennsylvania laws when it comes to regulating warning labels, meaning Bayer should be shielded from claims it failed to warn Roundup users adequately about cancer risks.
Shares in Bayer (XE:BAYN), listed on the Frankfurt Stock Exchange, were up 11% on Friday. The company’s stock has fallen 43% over the previous 12 months.
Roundup was first developed by chemicals company Monsanto in 1973. The company, based in Missouri, was acquired by Bayer for $63 billion in 2018.
Bayer’s acquisition saw the German pharmaceutical giant become liable for lawsuits related to claims Monsanto had failed to properly warn customers that using Roundup might increase their risk of developing cancer.
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