Bayer defeats Merck in lawsuit over talc liabilities
"Bayer will continue to defend itself against any further efforts by Merck to avoid or improperly transfer its liabilities to Bayer," the company said in a statement.;
US: A Delaware judge on Monday dismissed Merck & Co's lawsuit seeking to hold Bayer AG responsible for more talc-related liabilities stemming from its $14.2 billion purchase of Merck's consumer care business in 2014.
Vice Chancellor Nathan Cook of the Delaware Chancery Court said the purchase agreement "clearly and unambiguously" left Merck liable for claims related to products, including Dr. Scholl's foot powder, sold before the transaction closed.
The companies face potentially billions of dollars of liability from lawsuits by consumers alleging that asbestos contained in talc-based products such as Dr. Scholl's caused cancer.
Merck claimed that its liability ended on Oct. 1, 2021, seven years after the transaction closed, and sued Bayer after the German company refused to assume liability.
But the judge called Bayer's interpretation of the purchase agreement "the only reasonable one," and said letting Merck "dump" cases would give the Rahway, New Jersey-based company an incentive to prolong or stall lawsuits.
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