US Court Favors Bayer In Lawsuit Against Merck On Talc Liabilities

• Merck & Co (NYSE: MRK) remains on the hook for asbestos-related liabilities involving talc product lines it sold to Bayer AG (OTC: BAYRY) as part of a $14.2 billion deal concluded in 2014.

• According to the deal, Bayer acquired Merck's existing OTC business.

• Vice Chancellor Nathan Cook of the Delaware Chancery Court said the purchase agreement "clearly and unambiguously" left Merck liable for claims related to products sold before the transaction closed.

• Also Read: US Court Rejects Johnson & Johnson's Controversial Ploy To Evade Talc Cancer Lawsuits.

• Merck claimed its liability ended on October 1, 2021, seven years after the transaction closed, and sued Bayer after the German company refused to assume liability.

• "Nothing in the (agreement) indicates that the parties intended Bayer to assume liability for all of Merck's actions for the period during which it formulated, marketed, and sold the products" at issue, Reuters reported citing Cook.

• Merck said it was disappointed with the decision and planned to appeal.

• Bayer is already battling regarding its Roundup weed killer, which caused non-Hodgkin lymphoma. It has set aside about $16 billion for settlements.

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