Bayer Shares Fall After Jury Orders $2.25 Billion in Damages in Roundup Case

By Helena Smolak

Bayer shares slumped after the German pharmaceutical and agricultural company was ordered to pay $2.25 billion in damages in the latest setback in its legal battle over its Roundup weedkiller.

At 1032 GMT on Monday, Bayer shares traded 4.77% lower at EUR30.78, taking the stock's fall over the past three months to more than 24%.

The company confirmed that a jury in a Philadelphia court on Friday sided with a plaintiff and ordered it to pay $250 million in compensatory damages and $2 billion in punitive damages. Bayer said it intends to appeal the decision.

"We disagree with the jury's adverse verdict that conflicts with the overwhelming weight of scientific evidence and worldwide regulatory and scientific assessments, and believe that we have strong arguments on appeal to get this verdict overturned," a spokesman for Bayer said.

The company said it holds a strong record in the roundup litigation, having won 10 of the last 16 cases at trial.

Analysts at UBS expect Bayer to seek a reduction of compensatory damages in an appeal, but uncertainty around litigation is one of the key challenges facing the company, they said in a research note.

"We expect Bayer to appeal all cases lost at first instance and seek a reduction in damages, but the risk of increased provisions remains, in our view," the UBS analysts said.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

January 29, 2024 05:48 ET (10:48 GMT)

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