Bayer AG Stock: $2.1 Billion Verdict Drives 7% Plunge

Bayer AG's shares tumbled more than 7% on Monday, falling to €22.33 after a Georgia jury ordered the company to pay approximately $2.1 billion to plaintiff John Barnes, who claimed his cancer was caused by the weedkiller Roundup. The verdict includes $65 million in compensatory damages and a staggering $2 billion in punitive damages. This latest setback adds to the mounting legal challenges Bayer has faced since acquiring Monsanto for $60 billion in 2018. The verdict sent the stock below its 21-day moving average, threatening the recovery trend that began in mid-December. Bayer has announced plans to appeal, arguing the decision contradicts scientific evidence and regulatory assessments worldwide, including the US Environmental Protection Agency's determination that glyphosate is unlikely to cause cancer when used as directed.

Legal Strategy and Financial Outlook

Anzeige

Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Bayer AG?

The company expressed confidence it could significantly reduce the damages on appeal, noting previous cases where jury awards were cut by up to 90%. However, the legal battles continue to weigh heavily on Bayer's financial future. Of approximately 181,000 glyphosate claims, only 114,000 have been settled, with tens of thousands still pending. The ongoing litigation has decimated shareholder value, with the stock losing roughly three-quarters of its value since the Monsanto acquisition, driving market capitalization down to about €22.4 billion. To manage its substantial debt burden, Bayer plans to pay only the minimum dividend of €0.11 per share for the next three years while pursuing a potential landmark ruling from the US Supreme Court and legislative changes in states like Missouri, where 80% of outstanding cases are pending.