Bayer shares rallied 17% to close at $13.16 after the U.S. Supreme Court issued a 7-2 ruling that federal pesticide law preempts state-law failure-to-warn claims when the EPA has made a definitive safety determination. The decision is expected to significantly curb Roundup-related litigation costs by reinforcing that companies complying with federally approved labeling cannot be held liable under varying state tort laws. The stock's surge came on notably high trading volume and compares to a 2.2% gain over the prior four weeks. Bayer is expected to report quarterly earnings of $0.23 per share on revenues of $12.32 billion, and the stock currently carries a Zacks Rank #2, or Buy.
Bayer AG NASupreme Court ruling limits Roundup liability, reducing litigation costs
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