Bayer’s shares surged by 11% during morning trading after the firm declared a significant judicial triumph in its ongoing conflict regarding Roundup, the well-known herbicide linked to allegations of causing cancer.
The German life sciences enterprise experienced a rise in its stock prices when the 3rd U.S. Circuit Court of Appeals in Philadelphia ruled in favor of Bayer in a case initiated by David Schaffner. He alleged that Monsanto, which Bayer acquired in 2018, failed to provide a cancer warning on the Roundup label. Schaffner, diagnosed with non-Hodgkin’s lymphoma in 2006, indicated that his exposure to the pesticide resulted from his landscaping occupation and personal use.
Chief Judge Michael Chagares, delivering a statement for a trio of judges, determined that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) supersedes state statutes, signifying that a cancer warning on Roundup was unnecessary in this specific instance.
Schaffner’s lawyer, Chip Becker, conveyed dissatisfaction with the ruling, contending that federal norms should not take precedence over state laws regarding failure-to-warn allegations. Becker noted that the Schaffners would mull over their legal alternatives in light of the verdict.
Bayer has found itself caught in legal disputes concerning Roundup, with approximately 165,000 claims lodged against the product in the U.S., and about 54,000 cases still awaiting resolution as of August, following a $10.9 billion settlement in 2020.
The company highlighted that the ruling in Philadelphia is distinct from determinations made by other federal appellate courts, leading Bayer to urge the U.S. Supreme Court to tackle the matter. In a statement, Bayer asserted, “This ruling on federal preemption has generated a divide among the federal appellate courts, and the U.S. Supreme Court should review this vital legal issue.”
This development marks a significant advancement in Bayer’s legal strategies as they navigate the complex legal terrain surrounding Roundup.
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