Bayer (OTC:BAYRY) is trading down 3.69% at 52.93

Bayer shares dropped as much as 5% on Thursday after a U.S. judge rejected its plan to try and limit the cost of future class action claims that its Roundup weedkiller causes cancer.

The German group called into question the future sale of glyphosate-based products to residential users in the U.S., and said it would review plans to settle around 30,000 legal claims, after the judge called Bayer (OTC:BAYRY)’s plan to end years of litigation “unreasonable” on Wednesday.

“We will continue to assess financial risks as we move forward,” finance chief Wolfgang Nickl said in an analyst call, when asked if the estimate of the potential financial burden had been revised.

Bayer will be spared pay-outs related to future cases it had outlined in its plan this year and next but will continue to set aside $2 billion for the looming risk of further claims, reflecting its view that there were no fundamental changes in the outlook.

Investors were less optimistic, with shares falling as much as 5.3% and trading 4.2% lower at 0855 GMT. Analysts at brokerage Bryan Garnier called it “the story that never ends”. “This ruling will keep a Damocles sword on Bayer,” even as demand for seeds and farming pesticides recovers, they added.

On technical fronts Bayer (OTC:BAYRY) RSI stood at 39.58 and currently stock is trading below all Moving Average. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : Bayer (OTC:BAYRY) – SELL: 52.92, TARGET: 50.22 , STOP LOSS : 54.80