FRANKFURT (dpa-AFX) – The euphoria from the previous day over the glyphosate comparison seems to have subsided somewhat among Bayer shareholders (Bayer) on Wednesday. On Tuesday afternoon, the share price had almost climbed back to 50 euros for the first time since the summer of 2023 after the pharmaceutical and agricultural chemicals group announced a comprehensive collective settlement for the US glyphosate legal disputes. At the close of trading there was a price increase of 7.4 percent to 49.31 euros. On Wednesday morning, the Leverkusen company’s share price slipped by one percent on the Tradegate trading platform compared to the Xetra close.
Some short-term investors could now cash in. In addition, experts see the billion-dollar settlement as a further, very important step in finally getting the issue of glyphosate lawsuits, which has been tormenting us for years, off the table. However, they also remind us of still open questions. According to JPMorgan expert Richard Vosser, there is certainly the possibility that too many plaintiffs will decide against a settlement. If there were too many, the entire deal would collapse, according to Bayer.
Charles Pitman-King from Barclays Bank points to the pending decision of the US Supreme Court, which Bayer hopes will set a precedent. But it remains unclear what will happen if the judges of the US Supreme Court do not decide in favor of Bayer. The judges must decide whether federal law on warning labels when selling weed killers – as Bayer argues – supersedes state law.
Essentially, it’s about whether there was sufficient warning about the risks of using the weed killer. That’s why the Supreme Court’s decision is so important, says JPMorgan expert Vosser. A judge’s ruling favorable to Bayer would then affect plaintiffs who based their claims on the lack of warnings and did not agree to the proposed collective settlement. And the former is probably the basis for around 80 percent of all procedures./ag/mis/zb
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