In a bold move that is hoped to bring some finality to mounting
claim numbers, Bayer recently announced it will pay up to $10.9bn
to settle the majority of the estimated 125,000 claims alleging
Roundup caused their non-Hodgkin's lymphoma. However, this may
not be the end of a story with plenty of lessons for risk
managers.
Since litigation began a couple years ago, Roundup, a particular
brand of glyphosate based pesticide, is now firmly established as a
mass toxic tort in the US. Whilst this settlement will buy off much
of that risk, Bayer and other glyphosate producers must still
proceed with caution, given the potential for additional US and
global claims, as well the looming threat of shareholder actions,
ensuring it will stay on insurer's and corporates' risk
radars for some time to come.
