The U.S. Supreme Court showed a mixed reception during arguments on Monday regarding Bayer AG's endeavor to stop tens of thousands of lawsuits related to its Roundup weedkiller. The core of the case revolves around a $1.25 million jury verdict awarded to a Missouri man, John Durnell, who attributes his non-Hodgkin lymphoma to Roundup. Bayer contends that federal law, specifically the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), should preempt state-level failure-to-warn claims because the Environmental Protection Agency (EPA) did not require a cancer warning label for Roundup.
Bayer argues that since the EPA approved Roundup's label without a cancer warning, states cannot impose additional mandates that would conflict with federal regulations. The Supreme Court's decision, expected by early July, could significantly impact not only Bayer but also other industries like medical devices, cosmetics, and food, which operate under similar regulatory frameworks. The company has already committed over $10 billion to litigation and settlements and has set aside an additional $11.25 billion to address approximately 65,000 outstanding suits.
Bloomberg Intelligence analyst Holly Froum estimates that a favorable ruling for Bayer could affect about $787 million in existing Roundup verdicts, potentially eliminating plaintiffs' strongest claims. However, the court's divided appearance suggests the outcome is uncertain. The Trump administration has openly supported Bayer's position, asserting that federal law should take precedence. This legal battle unfolds while a proposed $7.25 billion class-action settlement is also in motion, designed to resolve many of the current and future lawsuits, regardless of the Supreme Court's ruling.
Despite the ongoing legal challenges, Bayer has removed glyphosate, the active ingredient in Roundup, from its residential products. The company has warned that continued litigation could force it to cease selling glyphosate to U.S. farmers, a move farming groups caution would pose a "devastating risk to America's food supply." The EPA, which last reviewed glyphosate in 2020, has not determined that it poses a cancer risk, but a federal court in 2022 ruled that the EPA's interim decision did not adequately consider the cancer link.
