Monsanto, the crop-protection business of Bayer, has proposed a $7.25-billion US nationwide class settlement through a long-term claims program designed to resolve current and future claims over Roundup, a glyphosate-based herbicide, in which claimants allege Non-Hodgkin lymphoma injuries.

The proposed settlement is the latest financial hurdle for Bayer, which acquired Monsanto in 2018 for $63 billion, including debt, representing the largest acquisition by Bayer in its history, and at the time, a strategic emphasis to its crop-protection business comparative to the company’s pharmaceutical business. Bayer consists of three main businesses: crop protection, pharmaceuticals, and consumer health.  

Through the proposed settlement, Bayer is seeking to contain the financial impact of ongoing Roundup litigation. “The proposed class settlement agreement, together with the Supreme Court case [Durnell case], provides an essential path out of the litigation uncertainty and enables us to devote our full attention to furthering the innovations that lie at the core of our mission: Health for all, Hunger for none,” said Bill Anderson, CEO of Bayer, in a February 17, 2026, statement. “This litigation and the resulting cost underscore the need for guidance from the Supreme Court on clear regulation in American agriculture. The class settlement and Supreme Court case are both necessary to help bring the strongest, most certain and most timely containment to this litigation.” 

To fund the class, Monsanto will make declining capped annual payments for up to 21 years totaling up to $7.25 billion, following court approval. The company says the long-term payment stream will provide the company with both greater certainty and control regarding its litigation costs for current claims and potential future claimants. 

Separately, Monsanto also has reached agreements to settle certain other Roundup (glyphosate) cases on confidential terms. Additionally, earlier this year (2026), Monsanto settled eight remaining verdicts concerning polychlorinated biphenyls (PCBs) related to the Sky Valley Education Center in the state of Washington on confidential terms. Monsanto also previously resolved PCB environmental cases with the states of Illinois and West Virginia. 

In total, and subject to a final audit, these resolutions including litigation costs will lead to an increase of the provision and liabilities for litigation from EUR 7.8 billion ($9.2 billion) (including EUR 6.5 billion [$7.6 billion] for glyphosate) as of September 30, 2025, to EUR 11.8 billion ($13.9 billion) (including EUR 9.6 billion [$11.3 billion] for glyphosate). Based on a first estimate of all litigation related payouts of approximately EUR 5 billion ($5.9 billion) in 2026, Bayer expects a negative free-cash flow for this year (2026). To reflect the settlement agreements in the financial statements, Bayer is shifting its announcement of 2025 year-end financial results and 2026 guidance to March 4, 2026. 

The immediate financing of these resolutions, as well as certain bond maturities, are secured by a bank loan facility of $8 billion. Ultimate financing is planned to use senior bonds and instruments receiving equity-credit by rating agencies and not an authorized capital increase. 

In addition to these settlements, the company says it will continue to pursue other elements of its multi-pronged strategy, including supporting legislation at the state and federal level, regulatory actions, and other measures that are intended to help achieve regulatory clarity and contain litigation risk. 

Source: Bayer