Bayer shares fell sharply Wednesday, erasing prior gains, as investors questioned whether its proposed $7.25 billion Roundup settlement signals a decisive legal turnaround.
The German pharmaceutical and crop science group announced an agreement to resolve tens of thousands of current and future cancer claims tied to Roundup.
The litigation stems from Bayer’s 2018 acquisition of Monsanto, which brought prolonged legal risks related to alleged health effects of the weedkiller.
After surging 7.3% Tuesday, the stock reversed course, dropping as much as 9.2% before trimming losses to around 8% in early trade.
Analysts at JPMorgan said the proposal moves in the right direction but flagged uncertainty over how many plaintiffs must opt in.
They also highlighted potential hurdles, including required court approval and the risk of significant opt-outs undermining the deal.
Investors remain focused on a pending U.S. Supreme Court ruling, which could determine the broader legal standing of the lawsuits.
While Bayer argues federal regulation should override state claims, legal experts caution the outcome remains uncertain, leaving the settlement far from finalized.
