Bayer AG (OTC:BAYRY) on Tuesday proposed a $7.25 billion settlement to resolve thousands of U.S. lawsuits claiming that its weedkiller Roundup causes cancer. The product was originally made by Monsanto, which Bayer acquired in 2018 for more than $60 billion.

“Litigation uncertainty has plagued the company for years, and this settlement gives the company a road to closure,” said Bayer CEO Bill Anderson. If approved by the court, the settlement would reduce potential exposure stemming from a future Supreme Court ruling, offering greater certainty to both Bayer and the patients pursuing damages.

Monsanto will fund the settlement through capped annual payments over up to 21 years, totaling as much as $7.25 billion, and has separately agreed to settle additional Roundup (glyphosate) cases under confidential terms.

The proposed settlement was filed in Missouri’s St. Louis Circuit Court, where ...