Bayer’s stock has slumped significantly in the aftermath of a historic verdict that saw a California jury award $289 million to a groundskeeper who argued that his terminal cancer was caused by Roundup. On Monday, August 13th, the company’s stock slumped more than 10 percent in trading just months after Bayer acquired Monsanto, the company who makes the popular Roundup weedkiller.
This stock hit is arguably the largest challenge yet faced by Bayer after its acquisition of Monsanto, a company that has been no stranger to controversy and criticism from environmental advocacy groups. Health and environmental groups have argued for years that Roundup is hazardous to human health, and Monsanto currently faces thousands of lawsuits asserting that Roundup is linked to cancer diagnoses, according to reporting by The Washington Post.
In Acquiring Monsanto for $63 Billion, Monsanto’s Legal Issues Became Bayer’s
Monsanto has long argued that its products, including Roundup, do not cause cancer, which the company once again argued after the historic $289 million verdict delivered in early August of 2018.
This statement has not stopped an estimated 5,000 cases from moving forward with legal claims against Monsanto that their products are, in fact, linked to cancer. These lawsuits are strengthened in no small part because the World Health Organization claimed in 2015 that glyphosate — an herbicide contained in Roundup — could cause cancer and is a likely carcinogen.
In the interim, glyphosate is still used regularly. In fact, the Environmental Protection Agency has cited glyphosate as one of the most commonly used herbicides in the United States.
Since Roundup litigation was ongoing at the time Bayer acquired Monsanto, it is likely that the company considered Monsanto’s litigation costs before making the acquisition. Still, Monsanto has long been one of the most infamous companies in America according to popular polling and opinion data. According to the USA Today’s coverage of the 20 most hated companies in America, Monsanto ranked number 16 in 2018. Of Monsanto, the USA Today piece argued that few companies “have garnered as much public ire”, or “for as long” as Monsanto.
By acquiring Monsanto, Bayer takes on this reputational risk and potential baggage, even though the company has publicly stated it would ditch the Monsanto name as part of a wide-ranging effort to win back the trust of consumers and critics alike.
It remains to be seen whether the rebranding strategy will prove successful, but it is clear that the market has responded unfavorably for the time being in light of the latest Roundup verdict.
Talk to a Roundup Attorney at The Ledger Law Firm
If you or a loved one seek justice and compensation after receiving a cancer diagnosis that may have been caused by Roundup, the recently issued $289 million verdict clearly indicates why it is important to discuss your legal claim with a Roundup attorney at The Ledger Law Firm.
Our nationally recognized personal injury law firm puts our national resources to work for Roundup cancer victims in order to obtain justice for cancer victims who were potentially harmed by Monsanto and Roundup’s glyphosate.
Contact us online for a free case evaluation with a Roundup lawyer at The Ledger Law Firm today.
