Bayer AG has achieved a significant legal victory in its ongoing battle to limit liability from claims that its Roundup weed killer causes cancer. On August 15, 2024, a U.S. appeals court in Philadelphia ruled that federal law protects the German company from a lawsuit filed by a Pennsylvania landscaper.
The 3rd U.S. Circuit Court of Appeals dismissed David Schaffner's claim that Bayer's Monsanto unit violated state law by not including a cancer warning on Roundup's label. Schaffner, diagnosed with non-Hodgkin lymphoma in 2006, initiated legal action against Bayer in 2019.
Chief Judge Michael Chagares, writing for a unanimous three-judge panel, stated that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) mandates nationwide uniformity in pesticide labeling, preventing Pennsylvania from requiring an additional cancer warning.
This ruling contradicts decisions from federal appeals courts in San Francisco and Atlanta in similar cases, potentially increasing the likelihood of U.S. Supreme Court intervention to resolve the conflicting judgments.
Bayer expressed satisfaction with the decision, maintaining that Roundup and its active ingredient, glyphosate, are safe. The company continues to face extensive litigation related to Roundup, with approximately 58,000 claims still pending despite settling much of the litigation for $10.9 billion in 2020.
The legal challenges have significantly impacted Bayer's financial standing, with its share price declining by over 73% since acquiring Monsanto for $63 billion in June 2018. Although Bayer has won 14 out of 23 Roundup trials through July 23, 2024, the losses have resulted in billions of dollars in damages awards.
"We are pleased with the decision and believe the Supreme Court should settle this important issue of law. Bayer continues to stand fully behind Roundup and maintains that it and its active ingredient glyphosate are safe."
It's worth noting that glyphosate, Roundup's active ingredient, was discovered to be a herbicide by Monsanto chemist John E. Franz in 1970. Since its introduction to the market in 1974, Roundup has become the most widely used herbicide in U.S. agriculture.
The ongoing debate surrounding Roundup's safety has led to various regulatory actions worldwide. While the U.S. Environmental Protection Agency has consistently found that glyphosate is not likely to be carcinogenic to humans, the World Health Organization's International Agency for Research on Cancer classified it as "probably carcinogenic to humans" in 2015.
In response to the controversy, Bayer announced plans to replace glyphosate in Roundup products for the U.S. residential market with alternative active ingredients. The company phased out sales for home use in 2023.
As the legal landscape continues to evolve, the potential involvement of the U.S. Supreme Court could have far-reaching implications for Bayer and the future of Roundup litigation. The court's previous rulings on cases involving FIFRA preemption of state law claims may provide insight into how it might approach this complex issue.