Judge suggests warning label as part of $2 billion plan to limit Roundup claims
20 May 2021
Bayer AG (DE:BAYGN) DOWN 1.05% AT 16.95
A U.S. judge suggested on Wednesday that Bayer AG (DE:BAYGN) include a warning label on Roundup as part of a proposed $2 billion settlement to resolve future claims that the top-selling weedkiller causes cancer.
Bayer (OTC:BAYRY) asked U.S. District Judge Vince Chhabria in San Francisco to give preliminary approval for the settlement deal, which would create a framework to resolve future lawsuits over claims Roundup causes non-Hodgkin lymphoma.
The company has said that decades of studies have shown Roundup and glyphosate, the main active ingredient, are safe for human use. A World Health Organization agency said in 2015 that glyphosate was “probably carcinogenic to humans.
“For years I’ve been wondering why Monsanto (NYSE:MON) wouldn’t do that voluntarily to protect itself,” said Chhabria, of a warning label. He said a label would prevent further lawsuits and free up money to create a better offer for people already exposed.
On technical fronts Bayer AG (DE:BAYGN) RSI stood at 56.38 and currently stock is trading Above all Moving Average. So, BUY position can be taken with following target and stoploss:
TRADE SIGNAL – : Bayer AG (DE:BAYGN) – BUY: 16.95, TARGET: 17.36, STOP LOSS : 16.64