Bayer Stock Surges for the First Time in 10 Years Amid the Hope of Mediated Settlement in Roundup Lawsuits
Stock for Bayer surged for the first time in over a decade following the company’s hiring of a new attorney to deal with the Roundup Weed Killer lawsuits the company faces. The company is hoping to bolster its response to the growing number of lawsuits linked to its takeover of the agricultural giant Monsanto.
Bayer’s stock had fallen about 40 percent since it acquired Monsanto, the company originally responsible for manufacturing and selling Roundup. The weed killing product faces accusations that its use has led to the development of cancer, especially in those who work around the product.
Investors had criticized Bayer for how it handled claims about the product, which contains glyphosate, a known carcinogen. According to Bayer, there are no studies that show a definitive link between Roundup use and the development of cancer. But now, the company has begun to shift from focus on scientific studies to taking its reputation and public perception into account.
Many familiar with the direction of the issue believe legal agreements might be a possibility now and Bayer might be open to the prospect of mediating some of the lawsuits. According to financial experts familiar with the situation, a mediated settlement would be costly, but overall would be a positive move on the part of Bayer. Experts agree that resolving the lawsuits should be the company primary priority.
Stock prices are expected to perform well, as long as Bayer appears to be open to the idea of mediating the glyphosate lawsuits and improving their overall perception in the public eye