Bayer receives approval from a U.S. court to spend $7.3 billion and settle herbicide lawsuits

German Bayer announced on Wednesday that a U.S. judge has preliminarily approved its $7.25 billion settlement plan to resolve the long-standing liability issues related to Roundup herbicide lawsuits. Bayer expects that the settlement payments will result in negative free cash flow in 2026.

The class action settlement plan was proposed in February of this year, with some plaintiffs who used the herbicide claiming they developed lymphoma, but Bayer has consistently denied the allegations. According to the statement, after the preliminary approval by the Missouri Circuit Court, class action members can opt out or object within 90 days, with the deadline set for June 4.

After the announcement, Bayer's stock price in Frankfurt narrowed its decline, ultimately closing down 2.4%