Monsanto’s parent company Bayer AG said it expects to pay $2 billion in a class settlement to resolve future claims that Roundup weedkiller causes cancer, increasing its original estimate of $1.25 billion.
The deal is part of a larger settlement the company announced in June to resolve claims in the sprawling multidistrict litigation in California federal court, which centers on allegations that glyphosate in the weedkiller Roundup made by Monsanto causes non-Hodgkin’s lymphoma.
“We are working in good faith to address the issues raised by the court to the satisfaction of the parties and need additional time to complete this process,” Bayer said in a statement. “These negotiations are confidential and therefore we cannot comment further at this time. Given the progress in the negotiations, we are taking additional provision in this quarter in part to cover the expected additional cost of the revised class plan which will take the cost of this program from $1.25 to approximately $2 billion.”
Bayer’s announcement comes more than a month after plaintiffs’ attorneys told the court they’d reached a “binding” agreement with Bayer following concerns that a $10 billion settlement announced in June fell through.
Representatives for the plaintiffs could not immediately be reached for comment.