Bayer shares plunged more than 10 percent on Monday after a California jury ordered the German company’s newly acquired Monsanto subsidiary to pay $289 million for not warning of cancer risks posed by its main weed killer.
The case against Monsanto, bought by Bayer this year for $63 billion, is the first of more than 5,000 similar lawsuits over the company’s glyphosate-based weedkillers, including its Roundup brand, across the United States.
Monsanto said on Friday that it would appeal against the verdict which is the latest episode in a long-running debate over claims that exposure to Roundup can cause cancer.
Barclays analysts said Bayer was in for a “litigious headache”.
“Whilst an appeal is certain and may indeed likely result in the penalty being moderated at a minimum if not reversed altogether, a large number of similar pending cases will now likely multiply.”
The controversy could also affect future revenues.
Monsanto said on Friday that it would appeal against the verdict which is the latest episode in a long-running debate over claims that exposure to Roundup can cause cancer.
Barclays analysts said Bayer was in for a “litigious headache”.
“Whilst an appeal is certain and may indeed likely result in the penalty being moderated at a minimum if not reversed altogether, a large number of similar pending cases will now likely multiply.”
The controversy could also affect future revenues.