German pharmaceutical and chemicals group Bayer AG said on Tuesday that its subsidiary Monsanto Co has submitted a proposed U.S. class settlement that could total up to $7.25 billion, aimed at addressing ongoing and future claims alleging that its Roundup weedkiller caused Non-Hodgkin’s lymphoma.
The proposal was filed in a Missouri court and would create a long-term compensation framework funded through capped annual payments over a period of up to 21 years. If approved, the programme would apply to the majority of pending cases in both state and federal courts across the United States.
In addition to the class settlement, Bayer said it is working on separate agreements worth about $3 billion to resolve existing U.S. Roundup lawsuits. Taken together, the measures amount to roughly $10.25 billion in potential commitments tied to the long-running litigation.
The proposed settlement includes a mechanism allowing individuals who can demonstrate a diagnosis of Non-Hodgkin’s lymphoma and prior exposure to Roundup before the filing date to submit claims over the next two decades. The agreement will require judicial approval before it can take effect.
Bayer has faced persistent legal pressure since acquiring Monsanto in 2018. Thousands of plaintiffs have alleged that Roundup’s active ingredient, glyphosate, contributed to their cancer diagnoses. The company has consistently denied that the herbicide causes cancer, while continuing to defend and settle cases.
As a result of the new proposal, Bayer expects its total provisions and litigation liabilities to increase from 7.8 billion euros to 11.8 billion euros. It also anticipates approximately 5 billion euros in litigation-related payouts in 2026, and now forecasts negative free cash flow for that year.
The financial impact has prompted Bayer to delay publication of its 2025 results and 2026 guidance until March 4, allowing the company to incorporate the effects of the proposed agreements into its outlook.
The settlement proposal marks Bayer’s latest attempt to bring greater certainty to one of the most significant legal challenges in its history, as investors closely monitor the company’s strategy for containing long-term exposure to Roundup-related claims.