Bayer Gets Supreme Court Hearing in Challenge to Roundup Suits

The US Supreme Court has agreed to hear Bayer AG's appeal in its challenge to thousands of lawsuits involving its weedkiller Roundup. The decision was announced on January 16, 2026, as the court considered the company's legal arguments that certain state claims are preempted by federal pesticide law according to Bloomberg.

The appeal centers on a $1.25 million Missouri jury verdict from 2023, where the court ruled against Bayer's Monsanto unit over failure-to-warn claims. The company is seeking a precedent that would potentially invalidate thousands of similar lawsuits. The ruling could provide clarity on the extent to which federal pesticide regulations override state tort law according to Bloomberg.

Since acquiring Monsanto in a $66 billion deal, Bayer has faced a deluge of litigation over Roundup and its active ingredient, glyphosate. It has already spent over $10 billion on verdicts and settlements, with approximately 67,000 pending claims remaining.

Why Did This Happen?

The Supreme Court's decision to take the case followed a recommendation from the Trump administration's solicitor general, who argued that the company's legal challenges had merit. The high court's involvement aims to address a legal split among lower courts regarding the preemption issue.

The current case is part of a broader pattern where courts have reached diverging conclusions on whether state law claims can proceed in cases involving glyphosate. This inconsistency has created uncertainty for companies and plaintiffs alike, prompting the need for a definitive high court ruling.

How Did Markets React?

Bayer's shares have shown some resilience in recent months, rising by about 80% in 2025. However, the stock is still below pre-Monsanto deal levels. Legal risks have continued to weigh on the company's valuation as investors remain cautious about the long-term financial implications of ongoing litigation according to Bloomberg.

The stock has also benefited from positive developments in its pharmaceutical division, such as Orion's recent guidance on strong growth for the prostate-cancer drug darolutamide. Bayer shares surged 6% following the announcement, offering a partial offset to legal concerns.

What Are Analysts Watching Next?

Analysts are closely watching the Supreme Court's potential ruling, which could affect thousands of pending Roundup-related lawsuits. If the justices side with Bayer, the company may see a significant reduction in its liability exposure. Conversely, a ruling in favor of plaintiffs could prolong litigation and increase financial risks according to Bloomberg.

The ruling is expected by the end of June 2026. In the meantime, Bayer continues to evaluate strategic options, with CEO Bill Anderson reportedly considering whether to discontinue glyphosate production altogether.

Investors are also tracking the broader legal landscape for glyphosate, including pending decisions from other courts and potential regulatory changes. These developments could shape investor sentiment and influence the company's long-term strategy.