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Dear Bayer Shareholders, What Are Y'all Thinking?

Bayer is a life-sciences company. It sell drugs amongst litigation risks (especially Xarelto), it genetically modifies seeds (which I estimate has litigation risks). It sells herbicides in addition to pesticides all of which accept litigation risks.

If yous produce "life sciences" yous muck to a greater extent than or less amongst living things in addition to that has litigation risks.

On twitter lately I sought out give-and-take on risks of Bayer stock in addition to litigation was the primal one.

Today Bayer stock is downward 12 per centum on a California courtroom illustration where a dying plaintiff claimed that roundup caused his cancer in addition to a jury agreed.

The damages were gear upward at $289 million.

Having watched lots of legal materials inward American stocks I would survive surprised if this were non rounded downward at to the lowest degree xc per centum on appeal, in addition to if the agglomeration of hereafter cases didn't toll a lot of money.

But whatever. Here is a list of the biggest shape actions inward the U.S. history. None intermission $10 billion except the global tobacco settlement.

The biggest aggregate claim I tin recollect is fen-phen which injure upward costing near $13 billion.

All of these are spread over many years. And are taxation deductible to boot.

Today Bayer's marketplace cap dropped $14 billion, bigger than the biggest gear upward of (non-tobacco) legal losses inward history.

This seems disproportionate to me - merely hence I ain Bayer stock. And I am puzzled.

So I am bespeak the people trading it inward Deutschland - why are yous hence pessimistic near this?

I truly desire to know.


John


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