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What does this do to the company's financial future? If there are thousands more of these lawsuits coming and the legal precedent has been set, and this one ver
by writimov 7y ago
What does this do to the company's financial future? If there are thousands more of these lawsuits coming and the legal precedent has been set, and this one verdict took 40% of Bayer's cash position away, how can they survive the next 12 months? Are they bankrupt already if even 10% of these lawsuits go through with the same verdict? https://seekingalpha.com/symbol/BAYRY/balance-sheet#figure_type=quarterly https://seekingalpha.com/symbol/BAYRY/balance-sheet#figure_t... Even if the verdict is slashed to 1/10th $100mil and they win 90% of their lawsuits, they will still lose 1,000. That's 1k X $100mil = $100bil in losses. Even cutting this by 50% they are still out of business.
- staticautomatic 7y agoThe punitive damage awards will be reduced to no more than about 10X the compensatory damage awards, so the math shouldn't be done using the actual verdict size.
- writimov 7y agoI thought I took that into account: the compensatory damages were $55mil. One thousand lawsuits lost (assuming 90% victory rate and 10k original lawsuits) times $55mil ea is $55billion in losses. With their current debt and income, they seem to be out of business.