Executive Summary: Key Legal and Evidentiary Issues

• This case is a Quebec class action filed against Bayer Inc. and related entities concerning the use of the anticoagulant drug Xarelto®.
• Authorization of the class action was granted on July 22, 2020, with the class description subsequently modified on December 9, 2025.
• Settlement negotiations resulted in a Settlement Agreement executed by the parties on October 27, 2025.
• No class members opted out of the settlement, and the sole objection raised was found to be not well-founded by the King's Bench for Saskatchewan on May 14, 2026.
• Class Counsel Fees and Disbursements were approved at a combined rate of 30% of the Settlement Amount, plus applicable taxes.
• Throughout the proceedings, the defendants denied liability and denied the truth of the plaintiff's allegations, with the settlement entered into without any admission of fault.

Facts of the case

The Estate of the Late Diane Gagnon, as Representative Plaintiff, brought a class action before the Superior Court of Quebec against Bayer Inc., Bayer Canadian Holdings Inc., Bayer Corporation, Bayer Healthcare AG, Bayer Pharma AG, and Bayer Healthcare Pharmaceuticals, Inc. (collectively, the "Defendants"). The action arose from claims related to the purchase, acquisition, or use of Xarelto®, a prescription anticoagulant medication manufactured and distributed by the Bayer group of companies. The class action was authorized by the court on July 22, 2020, and the description of the Quebec class was subsequently modified by judgment dated December 9, 2025.

Settlement agreement and key terms

The parties entered into a Settlement Agreement on October 27, 2025. On May 6, 2026, the Plaintiff filed an Application for Approval of the Settlement Agreement, Settlement Approval Notice, Claim Form, Distribution Protocol, and Class Counsel's Fees and Disbursements. The settlement was entered into on the express basis that it does not constitute an admission of liability, and the Defendants expressly denied liability and the truth of the Plaintiff's allegations. Under the agreement, all Class Members who did not validly opt out are deemed to have elected to participate in the settlement and are bound by its terms, including the releases contained therein. Provincial Health Insurers (PHIs) were also addressed in the settlement, with payments to be made to them in exchange for a release of all subrogated and direct claims related to the Released Claims during the class period.

Court's reasoning and analysis

The court considered all materials filed, including the Settlement Agreement and submissions of counsel for both parties. It noted that the Quebec Settlement Approval Hearing Notice had been approved on December 9, 2025, further modified on January 16, 2026, and duly disseminated. The time for opting out passed with no opt-outs received. One objection to the settlement was filed, but it was heard and dismissed as not well-founded by the King's Bench for Saskatchewan, which approved the settlement on behalf of the national class and counsel fees on May 14, 2026. The Fonds d'aide aux actions collectives was notified of the Application and a legal representative was present at the hearing. The court applied articles 590 and 593 of the Code of Civil Procedure, along with relevant Quebec Court of Appeal jurisprudence, in determining that the Settlement Agreement was valid, fair, reasonable, and in the best interests of Class Members. MNP Ltd. was appointed as Claims Administrator, tasked with administering claims independently, impartially, and in strict accordance with the Settlement Agreement and Compensation Protocol.

Ruling and overall outcome

The court granted the Application in its entirety, approving the Settlement Agreement and ordering the parties to comply with its terms. The Settlement Agreement was declared a transaction within the meaning of articles 2631 and following of the Civil Code of Quebec, binding upon all parties and Class Members who did not opt out. The Plaintiff and Class Members were the successful parties. Class Counsel Disbursements of $251,687.40 were approved, distributed among Merchant Law Group LLP ($146,486.54), Consumer Law Group Inc. ($18,673.30), McPhadden LLP ($2,500.00), and Siskinds Law Firm ($84,027.56). Class Counsel Fees of $1,098,312.60 — representing 24.4% of the Minimum Settlement Amount — were approved and distributed between Merchant Law Group LLP ($898,312.60) and Consumer Law Group Inc. ($200,000.00). An additional Class Counsel Fee of up to $225,000 (being 30% of the difference between the Maximum and Minimum Settlement Amounts) was also authorized, to be distributed 62.9% to Merchant Law Group LLP and 37.1% to Consumer Law Group Inc. The total Settlement Amount available to Class Members was not specified in the judgment. The whole was ordered without legal costs.