Key facts
- A federal judge returned Bayer's $7.25 billion Roundup settlement to Missouri state court.
- The judge ruled that only the defendant has the right to transfer a case to federal court.
A federal judge has returned Bayer's proposed $7.25 billion Roundup settlement to Missouri state court, reversing a transfer that plaintiffs had sought to move the case to federal jurisdiction. The decision is seen as a boost for Bayer's efforts to finalize the settlement.
This ruling is significant because it potentially clears a major hurdle for Bayer to finalize a large class-action settlement, impacting tens of thousands of individuals who claim Roundup caused them cancer and potentially influencing future litigation against the company.
A federal judge on Wednesday sent Bayer's proposed $7.25 billion settlement for Roundup cancer claims back to Missouri state court, a decision that could help the German company secure approval for the deal.
U.S. District Judge Henry Edward Autrey in St. Louis sided with Bayer, ruling that the objecting plaintiffs lacked the authority to transfer the case to federal court, as only the defendant holds that right. This ruling is likely to bolster Bayer's efforts to finalize the settlement by keeping it in the state court where it is being fast-tracked, avoiding review by a federal judge who had previously criticized the deal.
Bayer's Monsanto unit stated the decision provides "much-needed clarity" and allows the state court to proceed with approving the class-action settlement. The company remains confident that the settlement, supported by plaintiffs' counsel representing tens of thousands of potential class members, is fair.
However, the objecting plaintiffs have filed a notice of appeal for Autrey's decision. Chris Seeger, an attorney for plaintiffs supporting the settlement, described the ruling as removing an obstacle to a deal that could be one of the largest class-action payouts in U.S. history.
Bayer faces approximately 65,000 claims in U.S. courts from individuals alleging they developed non-Hodgkin lymphoma and other cancers after using Roundup. The company maintains that decades of studies show Roundup's key ingredient, glyphosate, is safe and does not cause cancer.
The settlement, proposed in February, aims to resolve nearly all Roundup lawsuits through a new class action filed in Missouri state court. The transfer to federal court by objecting plaintiffs had disrupted the expedited timeline.
In a separate matter, the U.S. Supreme Court is considering Bayer's argument that federal pesticide law should preempt state laws requiring manufacturers to warn of product risks, a ruling that could impact many of the pending lawsuits.