In addition to the Roundup compensation, Bayer will also pay about $820m to settle cases related to water pollution from the use of the now-banned toxic chemical compound polychlorinated biphenyl (PCB).
The Germany-based company, which bought Roundup maker Monsanto two years ago, said the settlement would cover about 95,000 cases.
Under the agreement, Bayer will make a payment of $8.8 billion to $9.6 billion to resolve current litigation, and $1.25 billion to address potential future litigation.
Before the decision to settle, Bayer contemplated continuing to litigate cases, but a risk assessment concluded that additional trials were not worth the financial and reputational risk, the company said.
Lawsuits against Monsanto followed.
The three cases that have gone to trial will continue through the appeals process and are not covered by the settlement, Bayer said.
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He added that customers will be limited to table service and only allowed to visit with one other household. We know this pandemic has been particularly hard for people working in hairdressing and hospitality.
Bayer shares are down 29 per cent since it close the Monsanto deal in June 2018.
Bayer denies glyphosate is a carcinogen, a position backed by the US Environmental Protection Agency.
Attorney Robin Greenwald of the NY law firm Weitz & Luxenberg, which represented several people who filed suit against Monsanto, welcomed the settlement.
Maurice Blackburn is leading one of a number of Australia class actions against Bayer claiming the herbicide causes certain types of cancers, including non-Hodgkin lymphoma.
"It has been a long journey, but we are very pleased that we've achieved justice for the tens of thousands of people who, through no fault of their own, are suffering from Non-Hodgkin Lymphoma after using a product Monsanto assured them was safe", Greenwald said in a statement. It was the third such courtroom loss for Monsanto in California since August. The agreement includes the establishment the creation of an independent Class Science Panel. No lawsuits are required for the payouts, but farmers must show proof of crop damage or reduced yields tied to dicamba contamination, the company said.
The company will also set aside $1.25 billion for a separate class agreement for potential future claims, which will be subject to approval in the U.S. District Court for the Northern District of California by Judge Vince Chhabria.
"We believe the settlement will be sufficient to resolve all legitimate claims in this litigation", Don Downing, one of the plaintiffs' lawyers leading the Missouri-based dicamba cases, said in an interview. "At the same time, the extensive body of science indicates that Roundup does not cause cancer, and therefore, is not responsible for the illnesses alleged in this litigation".
Bayer officials also agreed to pay $400 million to resolve claims that its dicamba herbicide drifted onto the fields of neighboring farmers and damaged their crops.