The U.S. Supreme Court ruled 7-2 to overturn a $1.25 million verdict against Bayer AG over its Roundup herbicide. The decision blocks a claim that the product should have carried a cancer warning, sending Bayer shares up more than 17% in after‑hours trading. The case stemmed from plaintiff John Durnell’s non‑Hodgkin’s lymphoma diagnosis. The ruling also significantly further legal revives the EPA’s label approvals, narrowing the path for similar claims.

The court said the EPA’s repeated label approvals remove state‑court jurisdiction, effectively shielding Bayer. Lawyers for plaintiffs warned the ruling could spark appeals to the Ninth Circuit, but the majority opinion sets a clear precedent that may curb thousands of pending suits and ease the firm’s legal‑reserve strain.

Investors greeted the judgment as a breath of relief after a decade of litigation that weighed on Bayer’s valuation. By potentially sealing off future claims, the ruling may free cash flow for the firm’s core pharmaceuticals and crop‑science units. Analysts note the market reaction could add several billion dollars to Bayer’s market cap if the litigation tail continues to shrink.