Bayer (ETR:) shares plummeted over 8% after the company unveiled a $7.25 billion settlement framework aimed at resolving the bulk of its Roundup glyphosate litigation in the US. This move lifts the company's total legal provisions to 11.8 billion euros, significantly increasing the provision from 7.8 billion euros. The proposed class settlement targets both existing and future US glyphosate claims, with payments spread over up to 21 years starting in 2026.

Barclays analyst Charles Pitman-King stated this resolves the majority of Bayer's litigation overhang. Management secured an $8 billion bank facility to fund the settlement immediately and committed against a capital increase. The settlement, subject to court approval, is expected to include 5 billion euros in litigation payments in 2026. Morgan Stanley analysts described it as the 'cost of increased certainty,' noting the Supreme Court ruling later this year remains critical to limit opt-outs and future claims. Barclays calculated the incremental settlement costs at 4 billion euros, arguing this is offset by the broader litigation resolution scope.