German biotech giant Bayer won support from the Trump administration on Monday to curb U.S. litigation related to its Roundup weedkiller. Shares of the company closed 12% higher.
The company faces thousands of lawsuits alleging the weedkiller has caused health issue including cancer and has already paid billions of dollars to claimants.
U.S. Solicitor General D. John Sauer urged the Supreme Court on Monday to limit the lawsuits brought against Bayer, supporting the firm’s argument that federal law on pesticides preempts claims made under state law.
“The support of the U.S. Government is an important step and good news for U.S. farmers, who need regulatory clarity,” Bayer CEO Bill Anderson said in a statement on Tuesday. “The stakes could not be higher as the misapplication of federal law jeopardizes the availability of innovative tools for farmers and investments in the broader U.S. economy.”
Bayer acquired Roundup maker Monsanto for more than $60 billion in 2018.