Chemical Companies Settle With U.S. Water Systems In PFAS Claims

(RTTNews) - Chemours Co. (CC), DuPont de Nemours Inc (DD) and Corteva Inc (CTVA) announced on Friday that they have reached a preliminary settlement agreement worth $1.19 billion to resolve allegations of contaminating U.S. public water systems with hazardous "forever chemicals".

The chemical companies are currently confronted with numerous lawsuits in the United States due to their alleged involvement in environmental pollution caused by per- and polyfluoroalkyl substances (PFAS).

These substances, which have been utilized in the production of non-stick coatings like Teflon for many years, have raised concerns regarding their impact on the environment.

The companies, despite refuting the accusations, anticipate reaching a formal agreement by the second quarter of 2023. According to the terms, Chemours is set to contribute half of the agreed-upon settlement amount, while the remaining portion will be provided by DuPont and Corteva.

Chemours has announced that it will incur a pre-tax charge of $592 million in the current quarter in connection with the establishment of the fund.

The category of chemicals known as "forever chemicals" has been associated with various health concerns including cancer, hormonal disruptions, compromised immune function, and harm to the environment.

The companies have stated that the settlement encompasses the claims brought against them by numerous water providers nationwide. These providers assert that the companies bear responsibility for assisting in the financial burden associated with remediation efforts to address PFAS contamination stemming from the use of firefighting foams.

The consolidated lawsuits, which name multiple companies involved in the production or sale of PFAS-containing products, are being heard in the federal court of South Carolina. The upcoming trial will focus on the claims against 3M Co. and will serve as a test case for the broader litigation.

Upon completion, the settlement will require the approval of U.S. District Judge Richard Gergel, who presides over the consolidated litigation. Chemours, DuPont, and Corteva were initially part of the defendants in the trial; however, Gergel excluded them from the proceedings in the previous month.

The extensive litigation presents substantial risks in terms of potential liabilities, as highlighted by Gergel in 2019, who expressed concerns that these risks could pose an "existential threat" to the defendants involved in the case.

The companies are also confronted with claims in additional court proceedings brought forth by individuals and state attorneys general in various jurisdictions, including California, Maryland, Washington, and other states.