WASHINGTON, DC (WOWO) Bayer is proposing a $7.25 billion plan to resolve thousands of lawsuits alleging its Roundup weedkiller caused cancer, marking a significant effort to limit ongoing litigation exposure.

The German pharmaceutical and agriculture company said it is increasing total litigation reserves to nearly $12 billion and expects approximately $6 billion in legal payouts in 2026. According to FOX Business, Bayer’s Monsanto unit has filed a proposed nationwide class settlement in St. Louis that would establish a long-term compensation program for individuals who allege they developed non-Hodgkin lymphoma after using Roundup.

Under the proposal, payments would be distributed through capped annual installments for up to 21 years. Individuals exposed to Roundup before mid-February 2026 who have already been diagnosed, or who receive a diagnosis within 16 years of court approval, could qualify for compensation. Awards would be determined using a tiered system based on exposure history and medical factors, with some payments potentially reaching approximately $198,000 or more.

Bayer has secured an $8 billion loan facility to finance the proposed settlement. The company says the agreement requires court approval and sufficient participation from claimants, noting it could withdraw if participation thresholds are not met.

Bayer faces roughly 65,000 plaintiffs in U.S. courts and maintains that regulatory agencies, including the Environmental Protection Agency, have found glyphosate safe when used as directed. Separately, the U.S. Supreme Court is preparing to hear a case that could determine whether federal labeling law preempts certain state-level failure-to-warn claims, a ruling that may affect future litigation risk.

The proposed settlement and the pending Supreme Court decision represent key developments in Bayer’s ongoing efforts to address long-running Roundup-related legal challenges.