ROUNDUP $13 Bn Settlement

Roundup - glyphosphate base herbicide
ROUNDUP a glyphosphate-based Herbicide – supplied By Monsanto

In 2016 the German chemical company Bayer acquired Monsanto – one of the largest global producers of agricultural chemicals – in a $60 Billion take over. The deal gave Bayer access to the US market with an expanded product range, including ROUNDUP – a glyphosate-based herbicide, – developed by Monsanto.

By 2019 Bayer were facing a growing number of product liability claims, from people arguing that their cancers, in particular Non-Hodgkin Lymphoma (NHL), had been caused by their exposure to ROUNDUP – as discussed in my previous article,

The claims being made were particularly serious, because:-

  • It was alleged that Monsanto’s negligence was wilful and deliberate – allowing claimants to seek punitive damages – designed to punish and deter such reckless behaviour.
  • The first successful claims, in 2019, made Bayer an attractive target for other lawyers working on a no-win-no-fee basis, with many potential claimants who had been exposed to ROUNDUP

It has now been reported that Bayer have reached a negotiated settlement with lawyers representing 125,000 claims about ROUNDUP and and it’s link to cancer.

According to Werner Bauman, Bayer’s Chief Executive:-

“First and foremost, the Roundup™ settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end, It resolves most current claims and puts in place a clear mechanism to manage risks of potential future litigation. It is financially reasonable when viewed against the significant financial risks of continued, multi-year litigation and the related impacts to our reputation and to our business. The decision to resolve the Roundup™ litigation enables us to focus fully on the critical supply of healthcare and food. It will also return the conversation about the safety and utility of glyphosate-based herbicides to the scientific and regulatory arena and to the full body of science.”

From albawaba

The settlement may mitigate the damage to Bayer reputation caused by prolonged legal arguments – and hopefully get compensation to those who have suffered before they die.

So Bayer have agreed that:-

  • The three cases that have already been decided against Bayer, and are subject to appeal will be ‘decided by the Courts’ in order to establish a precedent and provide legal guidance for the future
  • Bayer will pay $8.8 billion – $9.6 Billion to settle approximately 125,000 current claims, without admission of liability or wrong doing.
  • A further $1.25 billion will be made available to resolve future litigation
  • In addition, Bayer will provide funding of $1.25 billion for a independent Science Panel tasked with determining if exposure to ROUNDUP does in fact increase the risk of Non-Hodgkin Lymphoma.
  • All parties will be bound to accept the Science Panel’s findings which will be published by Bayer on their website when available.

It is difficult to estimate the total cost of the settlement, but based on the published information the costs will exceed $13 billion – but Bayer’s share price, that had slumped by 50% as investor confidence evaporated, may now start to recover.

The Bayer – Monsanto merger shows how important is to consider Product Liability Risks when valuing an acquisition – and that must include an assessment of the management culture and their risk management systems. For Bayer’s senior management team, underestimating those risks has proved to be a ‘near death experience’ and a disaster for Bayer – and their reputation.

To learn more…

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Pinnacle MoM Hips (Part 4)

Hip Replacement - used with the permission from www.mayoclinic.org
Hip Replacement Surgery (Used with permission of www.mayoclinic.org)

Legal Argument – What is a Defect?

In 2018 a group of 312 patients including Ian Haley, who had received artificial hips manufactured by Depuy, sued Depuy in the English High Court claiming that:-

  • The Pinnacle Hips with a Metal on Metal (MoM) bearings were legally defective, because the patient’s immune system reacted to microscopic wear particles from the bearing surfaces of the joint.
  • Typically, their Adverse Reaction to Metallic Debris (ARMD) caused the growth of pseudo tumors in the soft tissue around the joint, and damaged their muscles and bone structure – among other symptoms.
  • Patients with severe ARMD required revision surgery to remove and replace their Pinnacle MoM hips. In some cases leaving them with reduced mobility or a permanent disability.

But, the patients did not attempt to prove that Depuy had been negligent, or failed to exercise their Duty of Care

Instead they based their claim against Depuy on the European Product Liability Directive, which has been implemented in British Law by Part 1 of the Consumer Protection Act (CPA).

So in her written judgement the Judge, the Honourable Mrs Justice Andrews analysed the law, explaining how it should be applied – creating a precedent or example that may be used in future.

The Product Liability Directive

The Product Liability Directive was introduced in 1985, because the European Council recognised that the patch work quilt of legislation across Europe needed to be harmonised to:-

  • Balance the economic interests of consumers and producers
  • Enhance consumer protection

Reading the EU Directive, you will find:-

  • The preamble or Recitals, which explain the European Council’s policy objectives and the purpose of the Directive.
  • Articles, which define the rules to be implemented in the domestic law of the member states.

Although we may be tempted to fast forward through the Recitals – that is a mistake. The Articles are intended achieve the policy objectives explained in the Recitals – so the Articles must be interpreted in a way that achieves, as far as possible, those policy objectives.

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Pinnacle MoM Hips (Part 3)

Hip Replacement - used with the permission from www.mayoclinic.org
(Hip Replacement Surgery Used with permission of www.mayoclinic.org)

The Patient’s Complaint

Case studies, including this one, help us understand how the Courts have interpreted and applied law, to resolve real world disputes – creating precedents that may be followed in the future.

Depuy developed the Pinnacle metal on metal (MoM) hip, for younger and more active patients needing a ‘robust and durable’ hip replacement, as the result of traumatic injury or osteoarthritis.

Although most of the patients who received the Pinnacle MoM hip were pleased with them, a significant minority – including Ian Haley – developed an Adverse Reaction the Metal Debris (ARMD), as their immune system reacted to metallic wear particles from the hip’s bearing surfaces.

In 2018 a group of 312 patients, including Ian Haley, sued Depuy in the English High Court for compensation, claiming that they were harmed because the Pinnacle MoM hip was ‘legally defective’. So, what can learn from how they presented their case?

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Pinnacle MoM Hips (Part 2)

Hip Replacement - used with the permission from www.mayoclinic.org
Hip Replacement Surgery (Used with permission of www.mayoclinic.org)

The Patient’s Experience

When delivering product liability training we use case studies help develop people’s understanding of the law, showing how it applies in the real world of product design, manufacturing and marketing.

My last post discussed the design and development of Depuy’s range of artificial hips, including the Pinnacle metal on metal (MoM) hip. Introduced to the market in 2000, the Pinnacle MoM hip was designed to be more robust and durable than alternative designs – making it suitable for younger and fitter patients with a more active lifestyle.

Sadly, the Pinnacle MoM hip’s real world performance was worse than predicted in laboratory tests, and it was withdrawn from the market in 2013.

By 2018 Depuy faced 312 claims for compensation from dissatisfied patients in the UK, who had suffered an Adverse Reaction to Metallic Debris (ARMD) – or wear particles – from the hips’s bearing surfaces. Their claims were heard in the High Court under a Group Litigation Order (GLO) by the Honourable Mrs Justice Andrews, and her written judgement reviews the medical history of the six lead claimants- including Mr Ian Haley

The Patients’ Experience

In 2005 when Ian Haley took early retirement from his job as an operations manager, aged 59, he was looking forward to a long and happy retirement on the golf course. He enjoyed playing golf most days, but had some pain and discomfort in his left hip – which got steadily worse. By 2007 the chronic pain in his hip had become unbearable and he was referred an orthopaedic surgeon in Darlington.

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Pinnacle MoM Hips (Part 1)

Product Liability Case Study

Hip Replacement - used with the permission from www.mayoclinic.org
Hip Replacement Surgery (Used with permission of www.mayoclinic.org)

Design and Development of Pinnacle Hips

Depuy, now owned by Johnson and Johnson, developed the Pinnacle range of artificial hips for patients debilitated by osteoarthritis or traumatic injury. The Pinnacle design is a modular system, allowing surgeons to build the hip joint for each patient, using a selection of different bearing materials and components – rather like a medical Meccano kit

Key features of the design included:-

  • A CORAIL stem inserted into the the patient’s femur, with cemented and uncemented options
  • At the top of the stem, a ball and socket joint with a choice of different bearing materials, including a metallic or ceramic ball (femoral head) with a metallic, ceramic or plastic lined socket (antebellum). Allowing surgeons to select from of the following types of bearing;–.
  • Metal on Metal (MoM)
  • Metal on Plastic (MoP)
  • Metal on Ceramic (MoC)
  • Ceramic on Plastic (CoP)
  • Ceramic on Ceramic (CoC)
  • When using a plastic or ceramic lined socket, the surgeon could select a 28 mm or 32 mm diameter ball, but a larger 36 mm diameter ball was used with the thinner metallic liner – giving a larger bearing area.
  • In some circumstances, the modular design also allowed the artificial hip joint to be repaired, rather than replaced, if it was damaged.

The target market for the Pinnacle MoM hips included patients who were unsuitable candidates for other older or weaker designs of hip, due to their age, life style or weight. From a design point of view these more demanding patients presented particular challenges with:-

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Judicial Precedents – Examples From the Past

Judicial Precedents are examples from the past, showing how Judges have interpreted and applied the law in similar circumstances. To make sure the law is applied consistently, judges are required to consider relevant examples – or precedents – when making their own Judgements.

Written Judgement of The Court

So lawyers will search the legal archives looking for previous cases, that they can use as examples to persuade the Judge to rule in their client’s favour. The Judge will be asked to consider, and perhaps reconcile, different interpretations of the Law, or technical arguments found in precedents drawn to their attention.

At the end of the Trail, if the case goes that far, the Judge will produce a Written Judgement reviewing the evidence and arguments presented to them, and explaining how they reached their judgement. Their analyse and interpretation the Law will provide a new precedent, or example that other lawyers can use in future.

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Punitive Damages – to Punish and Deter Wilful Negligence

Following recent judgements against Monsanto in US Product Liability Cases, we need to understand why the damages were so large – and perhaps more importantly learn how we can avoid similar penalties.

Roundup - glyphosphate base herbicide
ROUNDUP is a glyphosate-based Herbicide – supplied By Monsanto

Facts of The Case

Monsanto, now owned by Bayer AG, have been selling glyphosate-based  herbicides under the ROUNDUP brand name since 1974. On it’s website and in their marketing literature Monsanto claim:-

Glyphosate-based herbicides are supported by one the most extensive worldwide human health and environmental effects databases ever compiled for a pesticide product. Comprehensive toxicological and environmental fate studies conducted over the last 40 years have time and again demonstrated the strong safety profile of the widely used herbicide


https://monsanto.com/app/uploads/2017/07/Glyphosate-benefits-and-safety_public-FINAL.pdf

However, amid growing public concern that powerful herbicides such as ROUNDUP may have undesirable side effects – Monsanto have mounted a vigorous public relations campaign to defend their brand against ‘activist and campaigners’

Monsanto now face over 4,000 claims from people in the USA claiming that exposure to  ROUNDUP has caused various cancers including Non-Hodgkin Lymphoma (NHL).

The first case to reach trail concerned DeWayne Johnson,  a 46 year old groundsman employed by the Benica unified school district in California – a frequent user of Monsanto’s Roundup products from 2012 until late 2015 – who was diagnosed with Non-Hodgkin lymphoma in 2014.

By the summer of 2018, when the case reached trial, Dewayne’s life expectancy was months rather than years – and 80% of his body was covered with lesions.

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Case Study;- Swindon Bus Crash (3 January 2018)

Swindon Bus Shelter Demolished by Bus

What happened?

On 3 January 2018, a local bus crashed into and demolished a bus shelter on Flemming Way, when the driver lost control as they prepared to move away from the stop. More by luck than judgement, nobody was killed or seriously injured – but the incident provides a useful case study to explore how Product Liability Law works.

By chance I was working in Swindon on the day of the accident – which occurred at the end of the evening rush hour. Walking back to my hotel after delivering a Product Liability Training Course, I arrived on the scene as the recovery crews were starting work. So, as a ‘curious onlooker’, with no role in the investigation – let me share my thoughts with you.

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