Round up of Bayer’s recent legal woes from Monsanto

Bayer

Agricultural Application Trends of Glyphosate in the United States According to U.S. Geological Survey (USGS) Data Credit from  new ATSDR Report on Glyphosate

A French court has ruled that Monsanto was liable for the sickness of a farmer who inhaled one of its weed killers, in another legal setback for the Bayer-owned business over health claims, reports Reuters.

In the latest stage of a decade-long legal tussle, the appeals court in Lyon on Thursday found in favor of farmer Paul Francois’ claim that Monsanto’s Lasso weed killer had made him sick and that the product’s labeling had been inadequate. Francois, 55, says he suffered neurological problems, including memory loss, fainting and headaches, after accidentally inhaling Lasso in 2004 while working on his farm.

“Mr. Francois justifiably concludes that the product, due to its inadequate labeling that did not respect applicable regulations, did not offer the level of safety he could legitimately expect,” the court said in its ruling.

Another Reuters story reported that  Bayer said it would comply with a U.S. federal judge’s order to enter mediation with a plaintiff who claims the company failed to warn against an alleged cancer risk from its Roundup weed killer. Bayer has seen $34 billion wiped off its market value since August, when a first U.S. jury found Bayer liable because Monsanto, the Creve Coeur-based company acquired by Bayer for $63 billion last year, had not warned of the alleged risk from Roundup, which is based on active ingredient glyphosate. It suffered a similar courtroom defeat last month and more than 10,000 cases are pending.

U.S. District Judge Vince Chhabria, who presided over the first two cases in federal court, said in a filing dated Thursday that Bayer and another plaintiff, Elaine Stevick, were ordered to start confidential mediation.

A third Reuters post reported that one of Bayer’s largest shareholders tore into the company’s management on Wednesday for underestimating the legal risks of its takeover of Monsanto, setting the stage for a fiery annual general meeting after a 30 percent plunge in the shares. “It’s quite drastic when a takeover triggers such value destruction and reputational damage so quickly. There can be no talk of a successful takeover anymore,” Ingo Speich, the head of sustainability and corporate governance at Deka Investment, told Reuters.

“What’s startling is that things have effectively moved beyond management’s control because we’re now at a point where the decisions over future development are made in court rooms,” he said, adding Bayer had clearly underestimated the risks.

Finally, a public health agency of the U.S. Department of Health and Human Services (DHHS), the Agency for Toxic Substances and Disease Registry (ATSDR), released the long-awaited Draft Toxicological Profile for Glyphosate.  The report supports and strengthens the 2015 cancer assessment of another health agency, the International Agency for Research on Cancer (IARC).

As the environmental group NRD Cnotes, a pattern is emerging: non-industry experts (Zhang et al 2019) and health agencies IARC and ATSDR are finding a link with glyphosate and cancer; whereas, regulatory agencies are lining up with Monsanto and Bayer that it does not cause cancer, even when reviewing the same scientific evidence.

Too Big to Feed

Mega-mergers are sparking unprecedented consolidation across food systems, and new data technologies represent a powerful new driver. For decades, firms in the agri-food sector have pursued mergers and acquisitions and other forms of consolidation as part of their growth strategies. However, the recent spate of mega-mergers takes this logic to a new scale. Since 2015, the “biggest year ever for mergers and acquisitions”, a number of high-profile deals have come onto the table in a range of agri-food sectors – often with a view to linking different nodes in the chain. These include the $130 billion merger between US agro-chemical giants,

Dow and DuPont, Bayer’s $66 billion buyout of Monsanto, ChemChina’s acquisition of Syngenta for $43 billion and its planned merger with Sinochem in 2018. These deals alone will place as much as 70% of the agrochemical industry in the hands of only three merged companies. A new report Too Big to Feed Exploring the impacts of mega-mergers, consolidation and concentration of power in the agri-food sector from the International Panel of Experts on Sustainable Food Systems analyzes this issue.

EU starts in-depth probe of Bayer, Monsanto deal

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Reuters reports that the European Commission has started an in-depth investigation of Bayer’s planned $66 billion takeover of U.S. seeds group Monsanto, saying it was worried about competition in various pesticide and seeds markets. The deal would create the world’s largest integrated pesticides and seeds company, the Commission said, adding this limited the number of competitors selling herbicides and seeds in Europe.  If the deal goes through, the newly merged company will be one of the largest agrochemical firms in the world and could put 90 percent of the world’s food supply in the hands of only four multinational corporations.

Inside the Academic Journal That Corporations Love

A recent lawsuit against Monsanto offers a clear and troubling view into industry strategies that warp research for corporate gain, Paul Thacker writes in Pacific Standard, an investigative magazine.  In a lawsuit regarding the possible carcinogenicity of the pesticide Roundup, plaintiffs’ lawyers suing Monsanto charge the company with ghostwriting an academic study finding that Roundup’s active ingredient, glyphosate, is not harmful. Glyphosate is the world’s most widely used weed killer and is critical for successful cultivation of genetically modified crops such as corn and soybean, which are resistant to the pesticide. Ghostwriting remains pervasive in some areas of academic research; in 2010, Thacker helped author a Senate report on the matter. Studies drafted by corporations and then published in scientific journals with academic authors have been used to sway government decisions, court cases, and even medical practice.