Don't Overreact to the $2 Billion Punitive Damages Award Against Bayer

Earlier this month, a California jury leveled a $2.055 billion verdict against agribusiness behemoth Monsanto, a subsidiary of Bayer (ETR:BAYN). The award arose from allegations that a married couple contracted cancer as a result of using Monsanto's Roundup weed killer.  This extraordinary verdict grabbed headlines and spooked Bayer's investors, with Bayer stock down nearly 2% in the aftermath of the award.  Although the verdict is bad news for Bayer (the company is potentially liable for hundreds of millions in this case after all), the company will likely never have to pay the $2 billion damages award that has stolen all the headlines.