NEW YORK, July 15, 2020 /PRNewswire/ -- Today,
prominent investor rights law firm Bernstein Litowitz Berger &
Grossmann LLP ("BLB&G") filed a class action lawsuit for
violations of the federal securities laws in the U.S. District
Court for the Northern District of California against Bayer Aktiengesellschaft
("Bayer" or the "Company") and certain of the Company's current and
former senior executives (collectively, "Defendants") on behalf of
investors in Bayer American Depositary Receipts ("ADRs") between
May 23, 2016, and March 19, 2019, inclusive (the "Class
Period").
BLB&G filed this action on behalf of its clients, City of
Grand Rapids General Retirement System and City of Grand Rapids Police & Fire
Retirement System, and the case is captioned City of Grand
Rapids General Retirement System and City
of Grand Rapids Police & Fire Retirement System v. Bayer
Aktiengesellschaft, No. 3:20-cv-04737 (N.D. Cal.). The
complaint is based on an extensive proprietary investigation and a
careful evaluation of the merits of this case. A copy of the
complaint is available on BLB&G's website by clicking
here.
Bayer's Alleged Fraud
Bayer is a multinational pharmaceutical and life science
company. On May 23, 2016, Bayer
announced that it had made an unsolicited all-cash offer to acquire
Monsanto Company ("Monsanto")—a U.S. based provider of agricultural
chemicals and other products. On June
7, 2018, after a protracted regulatory approval process,
Bayer completed its acquisition of Monsanto for $63 billion in cash (the "Acquisition").
The claims alleged in this case arise from Defendants'
misrepresentations and omissions regarding the significant
liability risk from lawsuits brought against Monsanto alleging that
Monsanto's flagship weed killer product, Roundup, caused cancer,
including non-Hodgkin's lymphoma—a lethal blood cancer.
The complaint alleges that, throughout the Class Period,
Defendants made false and misleading statements to investors,
describing the Acquisition as "a compelling transaction for
shareholders" that would create "significant value" by generating
"stronger growth, better profitability, and a more resilient
business profile" and "will translate into attractive financial
benefits for Bayer and its shareholders." Defendants
specifically downplayed the liability risks related to Monsanto's
Roundup product, emphasizing that the Company conducted a "thorough
analysis" during due diligence and "undertook appropriate due
diligence of litigation and regulatory issues throughout the
process" which led Bayer to finalize the Acquisition. As a
result of Defendants' misrepresentations, Bayer ADRs traded at
artificially inflated prices during the Class Period.
The truth emerged through a series of disclosures beginning on
August 10, 2018, when a California state court jury in the first
Roundup cancer case to proceed to trial found unanimously that
Roundup was a "substantial factor" in causing the plaintiff to
develop non-Hodgkin's lymphoma and that Monsanto knew, or should
have known, the risks associated with exposure to the chemical and
failed to warn of this severe health hazard. The jury also
found that Monsanto acted with "malice or oppression" and should be
punished for its conduct. Accordingly, the jury ordered
Monsanto to pay $39 million in
compensatory damages and $250 million
in punitive damages.
On October 22, 2018, although the
court in that case reduced the award of punitive damages from
$250 million to $39 million, the court otherwise denied
Monsanto's motion for judgment notwithstanding the verdict and
Monsanto's motion for a new trial, and upheld the jury's verdict
that the plaintiff's exposure to Roundup was a substantial factor
in causing his cancer.
Then, on March 19, 2019, a jury in
the first federal Roundup cancer lawsuit to proceed to trial issued
a verdict on causation in phase one of the bifurcated trial,
finding that plaintiff's "exposure to Roundup was a substantial
factor in causing his non-Hodgkin's lymphoma." As a result of
these disclosures, the price of Bayer ADRs declined
precipitously.
If you wish to serve as Lead Plaintiff for the Class, you must
file a motion with the Court no later than September 14, 2020, which is the first business
day on which the U.S. District Court for the Northern District of
California is open that is 60 days
after the publication date of July 15,
2020. Any member of the proposed Class may seek to
serve as Lead Plaintiff through counsel of their choice, or may
choose to do nothing and remain a member of the proposed Class.
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
Avi Josefson of BLB&G at (212)
554-1493, or via e-mail at avi@blbglaw.com.
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm
advising institutional investors on issues related to corporate
governance, shareholder rights, and securities litigation.
Since its founding in 1983, BLB&G has built an
international reputation for excellence and integrity and pioneered
the use of the litigation process to achieve precedent-setting
governance reforms. Unique among its peers, BLB&G has
obtained several of the largest and most significant securities
recoveries in history, recovering over $33
billion on behalf of defrauded investors. More
information about the firm can be found online at
www.blbglaw.com.
Contact
Avi Josefson
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1493
avi@blbglaw.com
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SOURCE Bernstein Litowitz Berger & Grossmann LLP