In December 2021, news began circulating about a class-action lawsuit against Monsanto, the agricultural biotechnology company. The lawsuit was filed by investors who claimed that Monsanto had misled them about the safety of its Roundup herbicide, which contains glyphosate, a chemical that has been linked to cancer.
Investors Demand Billions from Monsanto as Part of Class Action Lawsuit
The investors alleged that Monsanto knew about the potential health risks associated with glyphosate but failed to disclose this information to its investors. In particular, the representing law firm Tilp has said it believes Bayer deceived shareholders about the risks of consumer lawsuits pending in the United States linked to the weed killer Roundup. This product was brought into the company when German company Bayer acquired Monsanto in 2016 as part of a $63 billion acquisition. As a result, the now 320 investors are demanding 2.2 billion euros ($2.5 billion) from Bayer, which is said to have been filed in district court in Cologne. (1)
Not Properly Informed
The main part of the allegations is simply that Bayer-Monsanto did not fully disclose the carcinogenic nature of their products. The investors said they were misled and have therefore lost money due to the bad press round-up has received since the acquisition. Bayer, however, refutes this, stating that they have done nothing wrong and planned to defend themselves accordingly.
“In addition we are convinced that we have carried out adequate due diligence regarding the acquisition of Monsanto,” they said in an email statement. (2)
Since the lawsuit was first announced, investors have been demanding billions of dollars in compensation from Monsanto. It started out with 250 investors demanding $1 billion, and, as already mentioned, that has grown significantly. However, the latest update on the case was as of July 2022. The law firm associated with the case, Tilp, does not have it listed in its current cases.
Read: A potentially cancer-causing chemical is sprayed on much of America’s produce. How high is exposure near you?
Serious Allegations
Despite the lack of recent news on the case, the allegations against Monsanto are serious and have far-reaching implications. Glyphosate is one of the most widely used herbicides in the world, and its safety has been a topic of controversy for years.
In 2015, the International Agency for Research on Cancer (IARC), a branch of the World Health Organization, classified glyphosate as a probable human carcinogen. This classification was based on a review of existing research on glyphosate, which found that there was “sufficient evidence” to suggest that glyphosate can cause cancer in humans. (3)
However, Monsanto has consistently maintained that glyphosate is safe and has pointed to numerous studies that support this claim. The company has also accused the IARC of cherry-picking data to support its classification of glyphosate as a probable human carcinogen.
The Evidence is Stacked Against Them
Despite Monsanto’s claims, the evidence against glyphosate continues to mount. In 2018, a jury in California awarded $289 million in damages to a man who claimed that his use of Roundup had caused his cancer. The award was later reduced to $78 million, but the verdict sent shockwaves through the agricultural industry and raised questions about the safety of glyphosate. (4)
The class-action lawsuit against Monsanto is just the latest in a series of legal challenges that the company has faced over the safety of its products. In addition to the Roundup lawsuits, Monsanto has been sued over the safety of its genetically modified crops and its treatment of farmers.
A Waiting Game
The outcome of the class-action lawsuit against Monsanto remains to be seen, but it is clear that investors are demanding accountability from the company. The case highlights the importance of transparency and ethical business practices, particularly in industries that have a direct impact on public health and the environment.
As consumers, it is important to be informed about the products we use and to hold companies accountable for their actions. The class-action lawsuit against Monsanto is a reminder that we all have a role to play in ensuring that the products we use are safe and that the companies behind them are acting responsibly.
Keep Reading: 6 Brands Whose Ethics Are Costing Them Customers
Sources
- “Investors want $2.5 bln in class action over Bayer’s Monsanto deal.” Reuters. January 3, 2022.
- “German court ruling gives green light to investors’ lawsuit against Bayer.” IPE. Luigi Serenelli. July 27, 2022.
- “IARC Monograph on Glyphosate.” IARC
- “Jurors give $289 million to a man they say got cancer from Monsanto’s Roundup weedkiller.” CNN. Holly Yan. August 11, 2018.