Bayer May Seek Monsanto Bankruptcy Amid Ongoing Roundup Lawsuits

Bayer is reportedly exploring a plan to settle thousands of lawsuits related to its Roundup weedkiller and may consider placing its Monsanto unit into bankruptcy if talks fail, according to the Wall Street Journal. The move could temporarily halt litigation and allow the German pharmaceutical and biotech giant to resolve its legal troubles through bankruptcy court.

The company has already paid around $10 billion to settle claims alleging that Roundup, which contains the herbicide glyphosate, causes cancer. However, Bayer still faces roughly 67,000 pending lawsuits. The company has allocated $5.9 billion in legal reserves for future litigation.

To evaluate its legal options, Bayer has enlisted law firm Latham & Watkins and consulting firm AlixPartners. If a Chapter 11 bankruptcy filing proceeds, it could shield Monsanto from ongoing litigation and centralize liability discussions in court.

Bayer acquired Monsanto for $63 billion in 2018, inheriting the Roundup legal battles. Since the acquisition, Bayer has struggled with mounting legal costs, underperformance in its crop science division, and growing investor pressure to restructure or sell parts of the business.

In a related effort, Bayer recently asked the U.S. Supreme Court to limit future cancer claims tied to Roundup. A decision on that petition could come as early as next month. Bayer, Latham & Watkins, and AlixPartners have not responded to media requests for comment on the potential bankruptcy strategy.

The ongoing legal woes come amid broader challenges for Bayer, including a failed drug development in 2023 and volatility in global agriculture markets. Investors continue to scrutinize the company’s direction as it grapples with the costly aftermath of the Monsanto deal and seeks a path forward from the glyphosate litigation crisis.