Judge reduces Bayer Roundup damages to $25.3m over weedkiller case
A judge has slashed the damages that German chemicals company Bayer must pay out to a man who blamed its Roundup weed killer for causing his cancer.
Bayer’s share price edged up in morning trading after a US federal judge reduced the company’s sum from $80.3m (£64.3m) to $25.3m.
Read more: Bayer shares hit after £2bn payout
In a San Francisco court, judge Vince Chhabria concluded that while Monsanto, owned by Bayer, “deserves to be punished”, the original higher amount was “constitutionally impermissible” as it was almost 15 times the compensatory damages award.
Chhabria also rejected the firm’s claim for a new trial, although Bayer told Reuters that it would seek to appeal.
Read more: Bayer considers appeal after losing weedkiller case in Francce
In March a jury found Monsanto’s Roundup herbicide was a substantial factor in causing Edwin Hardeman’s cancer.
Bayer has suffered a 37 per cent drop in its share price over the last 12 months after also facing a swathe of other legal challenges and several costly court cases.
In May shares were hit when a jury awarded more than $2bn to a couple, marking the most substantial US jury verdict against the firm over the Roundup weed killer accusations.
Shares have climbed two per cent to €59.60 this morning, helping to push up Germany’s Dax.