Chemours, DuPont, and Corteva Provide Update and Affirm Support for PFAS Settlement with U.S. Water Systems
Chemours Company (CC) announces continued support for PFAS-related drinking water claims settlement with DuPont de Nemours, Inc. (DD) and Corteva, Inc. (CTVA)
The recent developments in the PFAS-related litigation involving The Chemours Company, DuPont de Nemours, Inc. and Corteva, Inc. hold significant legal and financial implications. The decision by these companies to move forward with the settlement, despite the extension for public water systems to opt out, indicates a strategic choice to manage potential liabilities and control legal costs. This action could mitigate long-term risks associated with ongoing litigation, which may be viewed favorably by investors concerned about the financial stability and future earnings of these companies.
Understanding the context, PFAS, or per- and polyfluoroalkyl substances, are a group of man-made chemicals that are found in many consumer products and have been linked to adverse health effects. Litigation surrounding PFAS contamination has become a financial and reputational concern for companies involved in their production. The settlement aims to resolve claims without admitting liability, which is a common legal strategy to avoid the uncertainties of a trial.
The financial impact of the settlement agreement on the involved companies' balance sheets could be substantial. Investors will scrutinize the terms of the settlement and the number of opt-outs to assess the potential financial exposure. The decision not to exercise walk-away rights suggests that the companies have conducted a cost-benefit analysis and concluded that the settlement is within their financial tolerance. This could indicate an avoidance of more significant financial impacts that protracted litigation might entail, such as higher legal fees, potential damages and the opportunity cost of management's focus on litigation instead of business operations.
Furthermore, the announcement provides a degree of certainty which might be reflected in the stock market as it reduces the ambiguity surrounding the financial outcome of this case. However, it is essential to monitor the final order from the court and the companies' financial disclosures to understand the full impact of the settlement on their financial statements.
The broader implications of this settlement for the chemical industry should not be underestimated. The handling of PFAS-related issues sets a precedent for how environmental liabilities are managed by chemical companies. This case may influence future regulatory actions and shape industry standards regarding the production and disposal of hazardous substances. Companies across the sector may need to revisit their environmental policies and litigation strategies in light of this settlement. This proactive approach to resolving environmental claims could be a model for other companies facing similar challenges, potentially leading to more industry-wide settlements in the future.
From a market perspective, the resolution of such environmental issues can be a double-edged sword. On one hand, it can lead to increased investor confidence in the governance and risk management practices of the companies involved. On the other hand, it may also signal upcoming regulatory costs and changes in operational practices that could affect profitability. Stakeholders should consider the long-term impact of environmental compliance on the industry's cost structure and competitive dynamics.
12/22/2023 - 06:45 AM
WILMINGTON, Del. --(BUSINESS WIRE)--
The Chemours Company (NYSE: CC), DuPont de Nemours, Inc. (NYSE: DD) and Corteva, Inc. (NYSE: CTVA) (the “Companies”) today announced their continued support for the June 30, 2023, agreement to comprehensively resolve PFAS1 -related drinking water claims of a defined class2 of public water systems.
On December 20th, the notice administrator in the South Carolina aqueous film-forming foam multi-district litigation (“AFFF MDL”) requested an extension until January 3, 2024, to file with the United States District Court for the District of South Carolina the list of public water systems that have opted out of the settlement class.
Under the terms of the agreement, the Companies have until today to exercise their walk-away rights based on the number of opt outs from the class. The Companies have sufficient insight into this process to determine that they remain in favor of the settlement and do not intend to exercise that right.
The court on December 7, 2023, issued an order allowing water systems that elected to opt out of the settlement to rejoin the settlement class until as late as March 1, 2024. On December 14, 2023, the court held a fairness hearing on final approval of the settlement; the Companies await the court’s final order and support final approval.
About The Chemours Company
The Chemours Company (NYSE: CC) is a global leader in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials providing its customers with solutions in a wide range of industries with market-defining products, application expertise and chemistry-based innovations. We deliver customized solutions with a wide range of industrial and specialty chemicals products for markets, including coatings, plastics, refrigeration and air conditioning, transportation, semiconductor and consumer electronics, general industrial, and oil and gas. The company has approximately 6,600 employees and 29 manufacturing sites serving approximately 2,900 customers in approximately 120 countries. Chemours is headquartered in Wilmington, Delaware and is listed on the NYSE under the symbol CC.
For more information, we invite you to visit investors.chemours.com or follow us on Twitter @Chemours or LinkedIn.
About DuPont
DuPont (NYSE: DD) is a global innovation leader with technology-based materials and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, healthcare and worker safety. More information about the company, its businesses and solutions can be found at www.dupont.com . Investors can access information included on the Investor Relations section of the website at investors.dupont.com .
DuPont™, the DuPont Oval Logo, and all trademarks and service marks denoted with ™, SM or ® are owned by affiliates of DuPont de Nemours, Inc. unless otherwise noted.
About Corteva
Corteva, Inc. (NYSE: CTVA) is a global pure-play agriculture company that combines industry-leading innovation, high-touch customer engagement and operational execution to profitably deliver solutions for the world’s most pressing agriculture challenges. Corteva generates advantaged market preference through its unique distribution strategy, together with its balanced and globally diverse mix of seed, crop protection, and digital products and services. With some of the most recognized brands in agriculture and a technology pipeline well positioned to drive growth, the Company is committed to maximizing productivity for farmers, while working with stakeholders throughout the food system as it fulfills its promise to enrich the lives of those who produce and those who consume, ensuring progress for generations to come. More information can be found at www.corteva.com .
Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate”, “target,” similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the settlement with plaintiff water utilities concerning PFAS liabilities. Factors that could cause or contribute to these differences include, but are not limited to: final court approval of the settlement; the outcome of any pending or future litigation related to PFAS or PFOA, including personal injury claims and natural resource damages claims; the extent and cost of ongoing remediation obligations and potential future remediation obligations; changes in laws and regulations applicable to PFAS chemicals; the final level of opt-out exclusions from the settlement. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Further lists and descriptions of risks and uncertainties can be found in each of Chemours’, DuPont’s and Corteva’s respective annual report on Form 10-K for the year ended December 31, 2022, and each of Chemours’, DuPont’s and Corteva’s respective subsequent reports on Form 10-Q and Form 8-K. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on each of Chemours’, DuPont’s or Corteva’s respective consolidated financial condition, results of operations, credit rating or liquidity. None of Chemours, DuPont or Corteva assumes any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
1 PFAS, as defined in this settlement, includes PFOA and HFPO-DA among a broad range of fluorinated organic substances.
2 The class is composed of all Public Water Systems, as defined in 42 U.S.C § 300f, with a current detection of PFAS or that are currently required to monitor for PFAS under the EPA’s Fifth Unregulated Contaminant Monitoring Rule (“UCMR 5”) or other applicable federal or state law. Approximately 88 percent of the U.S. is served by systems required to test under UCMR 5.
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Chemours - Investors
Brandon Ontjes
investor@chemours.com
Kurt Bonner
+1.302.773.0026
investor@chemours.com
Chemours - Media
Cassie Olszewski
media@chemours.com
DuPont - Investors
Christopher Mecray
+1.917.517.3388
Chris.mecray@dupont.com
DuPont - Media
Dan Turner
+1.302.299.7628
Daniel.A.Turner@dupont.com
Corteva - Investors
Kim Booth
+1.302.485.3190
kimberly.a.booth@corteva.com
Corteva - Media
Bethany Shively
+1.202.997.9438
bethany.shively@corteva.com
Source: The Chemours Company
What is the recent announcement made by Chemours Company (CC) regarding PFAS-related drinking water claims settlement?
Chemours Company (CC) announced their continued support for the June 30, 2023, agreement to comprehensively resolve PFAS-related drinking water claims of a defined class of public water systems.
What is the extension requested in the South Carolina aqueous film-forming foam multi-district litigation (AFFF MDL)?
On December 20th, the notice administrator in the South Carolina AFFF MDL requested an extension until January 3, 2024, to file with the United States District Court for the District of South Carolina the list of public water systems that have opted out of the settlement class.
What are the Companies' rights and intentions regarding the settlement class opt-outs?
Under the terms of the agreement, the Companies have until today to exercise their walk-away rights based on the number of opt outs from the class. The Companies have sufficient insight into this process to determine that they remain in favor of the settlement and do not intend to exercise that right.
What recent court orders have been issued related to the settlement?
The court on December 7, 2023, issued an order allowing water systems that elected to opt out of the settlement to rejoin the settlement class until as late as March 1, 2024. On December 14, 2023, the court held a fairness hearing on final approval of the settlement; the Companies await the court’s final order and support final approval.
