Bayer investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Bayer is a multinational pharmaceutical and life science company. The Class Period commences on May 23, 2016, when Bayer announced that it had made an unsolicited, all-cash offer to acquire Monsanto Company (“Monsanto”), a provider of agricultural chemicals and other products. After a protracted regulatory approval process, on June 7, 2018, Bayer completed its all-cash acquisition of Monsanto for $128 per share, or $63 billion including debt (the “Acquisition”). Before the Acquisition, Monsanto aggressively marketed and sold its flagship weed killer product, Roundup. Roundup is the most widely used weed killer around the world, which generated nearly $5 billion in annual revenue for Monsanto. The active ingredient in Roundup is glyphosate, a toxic chemical long suspected of causing cancer, including non-Hodgkin’s lymphoma—a lethal blood cancer.
In March 2015, more than one year prior to Bayer’s initial May 2016 offer to acquire Monsanto, the International Agency for Research on Cancer (“IARC”) found that there was strong evidence of an association between exposure to glyphosate and non-Hodgkin’s lymphoma and concluded that glyphosate was “probably carcinogenic to humans.” In early 2016, after the IARC classified glyphosate as “probably carcinogenic to humans,” numerous lawsuits were filed against Monsanto by cancer-stricken plaintiffs, alleging that exposure to Monsanto’s glyphosate-based weed killer, Roundup, had caused their cancer and that Monsanto failed to warn the public about the chemical’s toxic effects. By June 2018, when Bayer finally consummated the Acquisition, not only had thousands of personal injury lawsuits related to Roundup exposure been filed against Monsanto, but the plaintiffs in several of the first Roundup cancer cases had survived motions to dismiss, obtained damaging discovery, and fended off challenges to expert testimony and pretrial motions.
Throughout the Class Period, the defendants touted the Acquisition as “a compelling transaction for shareholders” that would create “significant value” by generating “stronger growth, better profitability, and a more resilient business profile.” However, the truth began to emerge on August 10, 2018, when a jury in the one of the first Roundup cancer lawsuits brought against Monsanto found unanimously that Monsanto’s glyphosate-based Roundup weed killer was a “substantial factor” in causing the plaintiff to develop non-Hodgkin’s lymphoma and that Monsanto knew, or should have known, the risks associated with exposure to the chemical and failed to warn of this severe health hazard. Accordingly, the jury ordered Monsanto to pay $39 million in compensatory damages and $250 million in punitive damages. Following this news, the price of Bayer ADRs declined over 11%, from $26.59 per ADR to $23.59 per ADR.
Then, on March 19, 2019, a jury in the first federal Roundup cancer lawsuit to proceed to trial issued a verdict on causation in phase one of the bifurcated trial, finding that plaintiff’s “exposure to Roundup was a substantial factor in causing his non-Hodgkin’s lymphoma.” Following this news, the price of Bayer ADRs declined over 9%, from $19.67 per ADR to $17.85 per ADR.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that the Acquisition would burden Bayer with significant exposure to the risk of suffering billions of dollars in judgments and reputational damage, among other things, if lawsuits brought against Monsanto alleging that exposure to its glyphosate-based Roundup product caused cancer, were successful.
If you are a member of the class described above, you may no later than September 14, 2020 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com