Sheet Metal Workers National Pension Fund v. Bayer Aktiengesellschaft

CourtDistrict Court, N.D. California
DecidedAugust 15, 2025
Docket3:20-cv-04737
StatusUnknown

This text of Sheet Metal Workers National Pension Fund v. Bayer Aktiengesellschaft (Sheet Metal Workers National Pension Fund v. Bayer Aktiengesellschaft) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheet Metal Workers National Pension Fund v. Bayer Aktiengesellschaft, (N.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 NORTHERN DISTRICT OF CALIFORNIA 9 SHEET METAL WORKERS NATIONAL 10 PENSION FUND, et al., Case No. 20-cv-04737-RS

11 Plaintiffs, ORDER GRANTING MOTION TO 12 v. INTERVENE AND GRANTING IN PART REQUEST TO MODIFY 13 BAYER AKTIENGESELLSCHAFT, et al., PROTECTIVE ORDER 14 Defendants.

15 I. INTRODUCTION 16 Plaintiffs’ Counsel from a separate multi-district litigation over Monsanto’s Roundup 17 product (“Roundup MDL”) request permission to intervene in this securities class case against 18 Monsanto’s parent company, Bayer Aktiengesellschaft (“Bayer”) and individual officers and 19 board members (“Bayer Defendants”). Movants here (“Proposed Intervenors”) contend the 20 discovery taken by the securities Plaintiffs, who have reached a preliminary settlement with Bayer, 21 is relevant to cases within and related to the MDL. Therefore, Proposed Intervenors seek a 22 modification of the Protective Order in this matter to allow Roundup plaintiffs access to 23 documents and depositions produced by Bayer in this case. For the following reasons, the motion 24 is granted as modified. 25 II. BACKGROUND 26 Two parallel cases are relevant to this motion. First, in 2016, the Judicial Panel on 27 Multidistrict Litigation transferred the first cases in MDL No. 2741 to a court in this district. The 1 Intervenors are the co-lead counsels appointed by the MDL court to coordinate and oversee 2 plaintiffs’ activity in that action. These Intervenors also represent plaintiffs in ongoing state court 3 cases, as well as previously settled Roundup claims. While some cases within the MDL have 4 already been tried, many remain on hold. Additionally, a multitude of individual cases are 5 currently proceeding through state courts throughout the country. Bayer did not produce discovery 6 in the consolidated MDL proceedings and has largely avoided participation in the non-MDL cases. 7 Separately, Plaintiffs in the above-captioned matter brought a putative class action in this 8 Court asserting violations of the Securities Exchange Act of 1934 (the “Exchange Act”) in relation 9 to Bayer’s acquisition of Monsanto. The case, first filed in 2020, centers on what Bayer knew 10 about and communicated to investors regarding the risk Bayer shouldered by acquiring Monsanto. 11 The Plaintiffs assert the Bayer Defendants misrepresented the legal liability it was taking on with 12 the acquisition. 13 After Plaintiffs in this case defeated a motion to dismiss, parties exchanged fact and expert 14 discovery. Of relevance to this motion, Plaintiffs deposed several Bayer executives with 15 knowledge of the Monsanto acquisition and received documentation of Bayer’s due diligence on 16 Monsanto, as well as information Monsanto provided to Bayer after the acquisition. After the 17 close of discovery, the parties reached a settlement agreement, and the Court granted preliminary 18 approval in June 2025. 19 Proposed Intervenors assert they became aware of potentially relevant evidence when the 20 parties in this case filed their motion for preliminary approval of their settlement. They argue that 21 because Bayer did not participate in the MDL and has otherwise avoided discovery in those cases, 22 a modification of the protective order in this matter is the only way Roundup plaintiffs can access 23 relevant evidence and avoid duplicative discovery. 24 Proposed Intervenors seek permission to intervene for the sole purpose of accessing 25 relevant discovery materials. They assert these materials are relevant to Roundup cases and will be 26 used subject to reasonable safeguards for confidential and privileged information. They seek 27 access to the following potentially relevant sets of documents detailed in the securities Plaintiffs’ 1 motion for preliminary approval: 2 • “60 requests for documents related to Bayer’s acquisition of Monsanto, due diligence, and 3 litigation risks associated with Monsanto’s Roundup product,” which “encompassed 4 internal communications, board minutes, advisory reports, acquisition agreements, 5 financial and reputational risk assessments, and documents on Bayer’s . . . investor 6 communications,” 7 • Interrogatories seeking “information on Bayer’s review of documents concerning 8 glyphosate and Roundup during due diligence for the Monsanto acquisition,” 9 • The Court-ordered production, over Bayer’s objection, of “certain due diligence documents 10 identified in [Defendants’] interrogatory responses,” which related to Bayer’s defense that 11 “Plaintiffs’ claims are barred, in whole or in part, because Defendants relied in good faith 12 on the representations, reports, expert opinions, and advice of others whom Defendants 13 believed to be reliable and competent in the matters presented”; 14 • The depositions of “eleven fact witnesses, including Bayer’s current and former senior 15 executives, board members, and general counsels,” 16 • The translation pursuant to the parties’ stipulation of certain German-language documents 17 and testimony; and 18 • Several expert reports and depositions. 19 Dkt. 253-2 at ¶¶ R–CC. 20 Discovery in this action was conducted pursuant to a Stipulated Confidentiality and 21 Protective Order. Dkt. 138. The Protective Order requires parties and others to adhere to certain 22 safeguards and procedural requirements in order to use “Protected Material,” which is defined to 23 mean “any Disclosure or Discovery Material that is designated as Confidential, Highly 24 Confidential, Highly Confidential – Attorneys’ Eyes Only, or Foreign Confidential Personal 25 Data.” Id. at 6, § 2.22. The Protective Order further provides that parties receiving protected 26 material may use it “only for prosecuting, defending, or attempting to settle this litigation.” Id. at 27 13, § 7.1. 1 2 Intervenors propose a modification to the current Protective Order, which would allow 3 Roundup litigants to use the discovery materials from this case to prosecute, defend, or settle their 4 own actions. Intervenors’ proposed order expands the current Protective Order to include 5 “Glyphosate Injury Actions” – or Roundup cases – and would require parties to those cases to 6 agree to be bound by the relevant terms of the Protective Order in this case to make use of such 7 protected material. The proposal defines Roundup cases as including: (1) the Roundup MDL; (2) 8 cases that have been or will be originally filed in, removed to, or transferred to the Roundup MDL; 9 (3) actions brought in state or federal court by or on behalf of a former user of Monsanto 10 glyphosate-containing products, such as Roundup, alleging injuries or other damages therefrom; 11 and (4) certain actions, claims, causes of action, or adversary proceedings brought by former 12 Roundup users in connection with a possible bankruptcy, insolvency, or similar proceeding of 13 Monsanto or its affiliates. The third of these categories, concerning actions brought in state or 14 federal court by former Roundup users, is modeled on the provision in the Roundup MDL 15 Protective Order that has facilitated the use of MDL discovery materials in many non-MDL cases. 16 Proposed Intervenors explain that the fourth category, concerning certain bankruptcy or 17 insolvency-related claims, is included strictly as a precaution due to recent news reporting that 18 Bayer is considering placing Monsanto in bankruptcy. In order to use protected material in these 19 actions, litigants and certain related individuals (such as attorneys and expert witnesses) would 20 need to agree to the pertinent Protective Order terms governing the treatment of that material. 21 Additionally, nothing in the proposed modification would guarantee the discoverability or 22 admissibility of the materials in a Roundup matter. 23 Proposed Intervenors attempted unsuccessfully to reach a stipulation on this intervention 24 and modification of the Protective Order.

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Sheet Metal Workers National Pension Fund v. Bayer Aktiengesellschaft, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheet-metal-workers-national-pension-fund-v-bayer-aktiengesellschaft-cand-2025.