Bayer AG (BAYN.DE) shares are up more than 10% today after the company scored a victory in a U.S. appeals court ruling that federal law protects the company from a lawsuit alleging that its Roundup herbicide causes cancer. A district court in Philadelphia dismissed a case in which Monsanto's unit failed to provide an adequate warning on the product's label about cancer risks.
The three-judge panel's ruling suggests that one of the major claims against the company may fail in state court, where most of the current cases are pending. Nevertheless, the ruling creates “a split among the federal appeals courts and requires review by the U.S. Supreme Court,” a Bayer spokesman said in an email. The company itself has set aside as much as $16 billion to resolve more than 100,000 Roundup cases. Bayer acquired Monsanto in 2018 for a total of $63 billion.
Source: xStation
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