Bayer Stock Plunges After Landmark Roundup Verdict

Shares of German pharmaceutical giant Bayer tumbled 7.5% on Monday after a U.S. court in Georgia ordered the company to pay a staggering $2.1 billion in damages over its controversial Roundup weed killer. This latest blow has intensified investor concerns about the company’s ongoing legal battles, with thousands of lawsuits still pending.

The verdict, delivered by the State Court of Cobb County, ruled against Bayer in a case linking Roundup's active ingredient, glyphosate, to cancer. The company, which has been embroiled in litigation since acquiring Monsanto for $63 billion in 2018, strongly disagreed with the ruling.

“We disagree with the jury’s verdict, as it conflicts with the overwhelming weight of scientific evidence and the consensus of regulatory bodies worldwide,” Bayer stated. “We believe we have strong arguments on appeal to overturn this decision and eliminate or significantly reduce the excessive and unconstitutional damage awards.”

Despite Bayer’s defense, investors reacted swiftly, sending the stock into a steep decline, making it the worst performer on the pan-European Stoxx 600 index.

Mounting Legal Costs Weigh on Bayer’s Future

Bayer has faced more than 100,000 lawsuits related to Roundup, with claims alleging the product causes non-Hodgkin's lymphoma and other health issues. The company has already paid out over $10.9 billion in settlements but continues to battle thousands of pending cases in U.S. courts.

With this latest ruling, analysts warn that additional multi-billion-dollar verdicts could further erode Bayer’s market value and financial stability.

European Markets React to Global Uncertainty

While Bayer’s sharp decline weighed on German stocks, broader European markets remained mixed on Monday, as investors digested trade policy signals from the United States and other industry developments.

By 2 p.m. London time, the pan-European Stoxx 600 remained largely unchanged, reflecting a cautious market sentiment:

• Germany’s DAX edged up 0.1%
• France’s CAC 40 dipped 0.1%
• The U.K.’s FTSE 100 traded flat

Travel & Leisure Sector Gains After Heathrow Reopening

Despite the legal turmoil surrounding Bayer, the travel and leisure sector saw a 0.5% uptick after operations resumed at London’s Heathrow Airport, which had suffered a major power outage on Friday.

British Airways parent company IAG saw its stock rise 0.9%, as investors responded positively to Heathrow's return to normal operations.

Swedish Defense Firm Saab Surges After Stock Upgrade

Swedish defense contractor Saab saw its shares jump 4.4% after UBS upgraded its stock from neutral to buy, citing the company’s strong positioning for increased defense spending across Europe.

Global Markets Eye U.S. Tariff Developments

Outside of Europe, Asian-Pacific markets traded mostly higher on Monday, though investors remained cautious ahead of U.S. President Donald Trump’s April 2 tariff deadline.

In the U.S., stock futures were in positive territory, suggesting that Wall Street could extend its recent gains.

Last week, U.S. stocks rallied after Trump hinted at potential "flexibility" on tariffs, though he stopped short of confirming exemptions for key industries. A report from The Wall Street Journal suggested that the final tariff list would be narrower than initially expected, potentially excluding some industry-specific duties.

What’s Next for Bayer and European Markets?

With Bayer’s stock tumbling, its ongoing legal battles will remain a major risk factor for investors. The company has signaled it will appeal the Georgia verdict, but with billions already spent on settlements and new lawsuits emerging, the road ahead remains uncertain.

Meanwhile, European markets will continue to react to U.S. trade policies, inflation data, and geopolitical developments, as investors navigate an increasingly volatile global economy.

With legal, economic, and political uncertainties mounting, traders will be watching closely to see whether Bayer can weather the storm—or if its Roundup-related liabilities will further erode shareholder confidence.

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