BAYN Bayer AG

By Laura Kisisto and Jacob Bunge 

Bayer AG has agreed on draft settlement terms with half a dozen law firms representing tens of thousands of plaintiffs alleging that its Roundup weedkiller causes cancer, pushing the litigation closer to a final resolution, according to people familiar with the matter.

The six big firms speak on behalf of dozens of other firms that represent a large chunk of the plaintiffs suing Bayer, the people said. Bayer is striving to find a way to both keep Roundup on consumer shelves and end litigation that significantly damaged its share price following the loss of three jury trials.

For weeks, Bayer and plaintiffs attorneys have been discussing a settlement in the $10 billion range, The Wall Street Journal has reported, citing people familiar with the matter. One person said the deal still appears poised to end up around that number.

But these people cautioned that a formal deal hasn't been signed and could yet fall apart.

Parties on both sides are free to walk away from the agreements, and Bayer has said that protecting itself from future litigation is a condition of any settlement.

The parties could reach a final agreement in the coming weeks, they said. That would help Bayer appease anxious shareholders in advance of its annual meeting in late April. A first deal with plaintiff lawyers would relieve the German chemicals and pharmaceuticals company of a major headache as the company is under growing pressure to reach a settlement to appease investors.

Kenneth Feinberg, the court-appointed mediator for the settlement talks, said he continues to be "cautiously optimistic that a settlement can be reached" but called it "premature" to say any final agreement has been achieved.

A spokesman for Bayer said, "Mediation discussions continue in good faith under a court order requiring confidentiality, and the company cannot comment on speculation about outcomes, timing or progress."

Tens of thousands of plaintiffs have sued Bayer, saying its popular weedkiller is linked to cancer. The company has defended the product, noting that multiple regulators, including the U.S. Environmental Protection Agency, have said it is safe. The company lost its first three jury trials, all of which it is appealing.

--.Ruth Bender contributed to this article.

Write to Jacob Bunge at jacob.bunge@wsj.com

(END) Dow Jones Newswires

March 13, 2020 14:46 ET (18:46 GMT)

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