Bayer has been struggling to finalize the settlement of claims that Roundup and other glyphosate-based herbicides cause non-Hodgkin’s lymphoma, a type of cancer. Bayer inherited the business and the litigation as part of a $63 billion acquisition of Monsanto in 2018.
The company has said that decades of studies have shown Roundup and glyphosate are safe for human use.
Wednesday’s settlement would cover future claims brought by individuals who have been diagnosed with non-Hodgkin’s lymphoma and were exposed to Roundup before their diagnosis. The settlement also includes benefits for people who were exposed to Roundup and develop the cancer in the future.
Roundup, which Monsanto first brought to the market in 1974, is widely used by farmers across the United States and Brazil, alongside crops that are genetically engineered to withstand the its herbicidal effect.
Glyphosate will remain on the market. Bayer agreed to seek permission from the U.S. Environmental Protection Agency to provide a reference link on labels so consumers can find scientific studies on the weedkiller.
Under the proposed plan, Bayer will provide $2 billion for a four-year period as compensation and to cover outreach and diagnostic assistance. Future claimants could receive up to $200,000 under the deal.
The parties can agree to extend the settlement period.
The company said the settlement amount was disclosed last year.