Two Investment Firms Call For Bayer CEO Fired Because Monsanto Purchase and Lawsuits

Alatus Capital and Temasek Holdings, two major investment firms, have called for Bayer CEO Werner Baumann’s resignation. The company’s value has dropped since Monsanto was acquired, in large part due to the billions spent on the Roundup litigation.

Bayer purchased Monsanto in 2018 for $63 billion. The two investment firms claim that this was a bad deal for shareholders because Monsanto was already dealing with thousands of lawsuits from Roundup users who had been diagnosed with non-Hodgkins Lymphoma and other injuries.

Bayer was the target of a series of large jury verdicts in the months following the acquisition. These verdicts were based on Monsanto’s failure to warn consumers about Roundup’s cancer risks. The company has already paid more than $11 million in Roundup settlements. The company faces numerous unresolved claims and there are likely to be new claims as former Roundup users develop non-Hodgkins Lymphoma.

Bayer was unable to successfully defend Monsanto’s actions at trial. However, it suspended settlement negotiations while it waited for a U.S. Supreme Court ruling on whether it would review two earlier verdicts. Bayer hopes this will result in a decision that will curtail future claims. There is no guarantee that the highest appellate court will consider Bayer’s appeal. However, juries are likely to be presented with a steady stream in the next months and year.

Two major investment firms called for a vote against Baumann at the next shareholder meeting. It is set for April 29.

According to an press release (PDF), by Alatus Capital, “The actions taken by Mr. Baumann have caused significant shareholder value destruction in Bayer.” This statement was made on March 18. The Fund was a long-term shareholder in Bayer, but it is urgent that a new leader be appointed. Baumann must accept full responsibility for the failures of his leadership and should not have his actions ratified by the Annual General Assembly.

Baumann was appointed to continue as CEO until 2024. He also survived another no-confidence vote in 2019 due to concerns about the Monsanto acquisition.

Alatus points out that Bayer’s share prices have dropped 48% since Monsanto was purchased.

Bayer told investors that if the Roundup Supreme Court appeals fail, it will continue with a claims administration plan to address future lawsuits. This could lead to billions of dollars in additional payments or verdicts.

The company also announced it would remove the active ingredient glyphosate in Roundup products sold to residential customers in the United States by 2023 to reduce its future liability.

from lawyers.buzz https://lawyers.buzz/two-investment-firms-call-for-bayer-ceo-fired-because-monsanto-purchase-and-lawsuits/230/
via IFTTT