Bayer Investors Get Class Status in Monsanto Deal Risk Suit (2)

Two pension funds can represent a class of investors in a lawsuit alleging Bayer AG didn’t adequately vet Roundup herbicide maker Monsanto Co. before buying it and didn’t warn them about cancer litigation risks.

The lead plaintiffs cleared a big hurdle with Chief Judge Richard Seeborg‘s May 19 decision to certify a class, since such a ruling typically sets the stage for settlement. Seeborg oversees the case in the US District Court for the Northern District of California.

The stakes are high. Bayer securities lost 26% of their value, and Bayer lost $12.87 billion in market capitalization, as a ...