Summary
E. I. du Pont de Nemours and Company (DuPont) filed an 8-K on February 13, 2017, to report the settlement of approximately 3,550 personal injury lawsuits related to perfluorooctanoic acid (PFOA) exposure. The litigation, consolidated in a multi-district litigation (MDL) in Ohio, alleged harm from PFOA manufactured or used at the Washington Works plant, which was previously operated by DuPont's performance chemicals segment and is now owned by The Chemours Company. DuPont and Chemours have reached an agreement in principle for a global settlement totaling $670.7 million, with each company responsible for half of the payment. This settlement is crucial for resolving significant legal and financial liabilities stemming from historical operations.
Key Highlights
- 1DuPont has entered into an agreement in principle to globally settle approximately 3,550 personal injury lawsuits concerning PFOA exposure.
- 2The total settlement amount is $670.7 million, with DuPont and Chemours each contributing 50% ($335.35 million).
- 3DuPont's portion of the settlement payment will not be subject to indemnification or reimbursement by Chemours.
- 4The settlement provides a complete release of all claims from the settling plaintiffs for both DuPont and Chemours.
- 5The settlement is not subject to court approval but requires the drafting of a master settlement agreement and includes a walk-away right for DuPont under certain conditions.
- 6DuPont and Chemours have agreed to a limited, five-year sharing of potential future PFOA liabilities, with specific payment caps for each company and DuPont covering excess amounts up to $25 million annually.
- 7Chemours has waived certain defenses related to PFOA liabilities under the Separation Agreement, including those concerning punitive damages, fines, or penalties, but retains defenses regarding the scope of coverage.