Monsanto's Roundup ruling causes Bayer share drop

Shares in the German life sciences giant Bayer (BAYN: DE) fell by 11% over the weekend after a US court ruled that the weedkiller Roundup (glyphosate) was responsible for the cancer of a school janitor.

A California court ruled that Monsanto, now a unit of Bayer, would be required to pay $289 million in damages to Dewayne Johnson. Mr Johnson reported an accident in 2012 where he was soaked with Roundup, and was diagnosed with non-Hodgkin's lymphoma just two years later. The trial was expedited due to Mr Johnson's limited life expectancy.

Some 5,000 similar lawsuits are believed to be on the horizon, which could cost the German company billions in damages. Bayer completed the purchase of Monsanto in June for $66 billion, but will likely face difficulty integrating the seed and agritech firm into its operations while allegations of misconduct and duplicity swirl around the new subsidiary, which has been accused of hiding Roundup's alleged dangers. The jury accused Monsanto of "malice," and Mr Johnson's lawyer demanded a "day of reckoning" for the firm.