Bayer Faces €7.25B Class-Action Hearing and Supreme Court Decision After €60B Value Loss
GE•Since acquiring Monsanto in 2018, Bayer AG’s market value has plunged by over €60 billion as it faces Supreme Court judgment and a €7.25 billion class-action hearing on Roundup lawsuits in early July. Jefferies projects shares could rebound to €50 on favorable rulings or slide to €30 if further litigation costs arise.
1. Litigation Proceedings
Bayer AG is awaiting two pivotal legal events: a US Supreme Court decision on failure-to-warn claims tied to Roundup herbicide and a class-action hearing on a proposed €7.25 billion settlement covering current and future cancer lawsuits. Both developments are scheduled for early July and will determine whether the bulk of litigation can be resolved.
2. Market Value Decline
Since completing its €63 billion purchase of Monsanto in 2018, Bayer has seen over €60 billion wiped from its market capitalization as investors weigh ongoing legal risks. Shares have traded near €35.79, and management may need to book additional double-digit billion-euro provisions if outcomes are unfavorable.
3. Analyst Forecasts
Jefferies projects that a successful resolution could drive Bayer’s share price up to €50, while further litigation costs could pull it down to €30. Legal experts estimate a 70% chance of a positive Supreme Court ruling, and Barclays analysts expect significant progress toward clearing the litigation overhang.
