Bayer shares dive after jury decides weed killer causes cancer
San Francisco/Berlin — Shares of Bayer plunged by the most in almost seven years on concern about the potential costs of a protracted legal battle over Roundup weed killer, the cornerstone product of newly acquired Monsanto. Monsanto was socked with $289m in damages in the first trial over claims that the herbicide causes cancer when former school groundskeeper Lee Johnson prevailed on Friday in San Francisco state court. The company, whose market value fell by more than €10bn on Monday, says Roundup is safe. The trial was an important test of the evidence against Monsanto and will serve as a template for litigating thousands of other claims over the herbicide. Bayer closed a deal to buy Monsanto for $66bn in June. If the litigation generates large verdicts, it could have a material impact on Bayer’s bottom line, said Chris Perrella, an analyst for Bloomberg Intelligence. The verdict surprised Bayer investors and may stir up memories of the scandal over cholesterol-lowering pill Lip...
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