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Bayer braces for Q3 surge in Roundup claims

|About: Bayer Aktiengesellschaft (BAYRY)|By: , SA News Editor

Bayer (OTCPK:BAYRY -0.3%) says it expects a "significant surge" in the number of plaintiffs suing the company over its Roundup weedkiller when it reports earnings later this month.

The company thinks an increase in advertising by U.S. attorneys seeking new clients since mediation talks began likely will add to the litigation, but also says "the number of plaintiffs is not an indication of the merits of these cases."

J.P. Morgan analysts recently said the current number of plaintiffs could exceed 45K, compared with Bayer's last estimate of 18,400 in July.

The Roundup crisis already has cost Bayer more than $30B in market value as the company lost three U.S. trials over whether the herbicide causes cancer.

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