By Clark Mindock
(Reuters) – Chemours Co, DuPont de Nemours Inc and Corteva Inc on Friday said they had reached an agreement in principle to settle claims that they contaminated U.S. public water systems with toxic “forever chemicals” for $1.19 billion.
The chemical companies are facing thousands of lawsuits in the U.S. over their alleged role in polluting the environment with perfluoroalkyl and polyfluoroalkyl, substances (PFAS) that have been used for decades in manufacturing nonstick coatings such as Teflon.
The companies, which deny the allegations, said that they expect to finalize a formal agreement by the second quarter of 2023. Chemours said it would contribute half the agreed amount, while the remainder would be provided by DuPont and Corteva.
Chemours will take a pre-tax charge in the current quarter of $592 million related to the fund.
“Forever chemicals” have been linked to cancer, hormonal dysfunction, weakening of the immune system and environmental damage.
The companies said the agreement includes claims made against them by hundreds of water providers across the country, who say they are responsible to help pay to clean up PFAS contamination from firefighting foams.
Those lawsuits, which also target several other companies that made, or sold, products containing PFAS, have been consolidated in South Carolina’s federal court. A first trial testing those claims against 3M Co. is scheduled to begin next week.
Once finalized, the settlement will be subject to the approval of U.S. District Judge Richard Gergel, who is overseeing the consolidated litigation.
Chemours, DuPont and Corteva were originally included as defendants in that trial, but Gergel removed them from the proceedings last month.
The sprawling litigation poses significant liability risks, which Gergel said in 2019 could pose an “existential threat” to the various defendants involved.
The companies also face claims in other courts raised by individuals and by state attorneys general in California, Maryland, Washington and elsewhere.
(Reporting by Sourasis Bose in Bengaluru and Clark Mindock in New York; Editing by Shounak Dasgupta, Vinay Dwivedi, Alexia Garamfalvi and Sharon Singleton)
