DuPont, and plaintiffs’ attorneys in the Ohio have agreed to a settlement in principle on 3,550 lawsuits related to PFOA personal injury claims arising from environmental releases from the Washington Works plant in West Virginia.
The total settlement is $670.7 million in cash, half of which will be paid by current plant owner Chemours and half by DuPont.
Both companies denied any wrongdoing regarding the chemical, which is known to stay in the environment for a long time.
The settlement includes all claims pending in the MDL, including current jury verdicts. DuPont discontinued PFOA operations at that plant more than a decade ago.
The settlement agreement is subject to receipt of releases or dismissals, as applicable, from individual plaintiffs, among other conditions. DuPont’s payment will not be subject to indemnification or reimbursement by Chemours.
To address potential future costs not covered by the global settlement, during each of the five years following the the settlement, Chemours and DuPont have agreed that Chemours will annually pay the first $25 million of any potential future PFOA costs. If that amount is exceeded, DuPont will pay any additional amount up to $25 million, annually.
The cases arose from the use of the chemical at The Washington Works, a plant near the Ohio River. After the spin-off of Chemours by DuPont, the plant became part of Chemours.
The cases and the work of a lawyer regarding the claims was the subject of a widely circulated New York Times story.
Last year, speculation over the future course of the claims contributed to Chemours’ stock falling below $4 a share. Shares have since rebounded, finishing above $28 last week. Chemours has also made progress in cutting its expenses and debt load post-DuPont.
For DuPont, the settlement takes away an environmental liability question mark as European regulators study a pending merger with Dow.
Chemours had maintained that DuPont was financially responsible.
Chemours, based in Wilmington, has approximately 8,000 employees across 25 manufacturing sites in North America, Latin America, Asia-Pacific and Europe.
“This agreement provides a sound resolution for area residents, Chemours, and the public,” said David C. Shelton, general counsel of Chemours. “It settles all indemnification obligations between Chemours and DuPont for all of the approximately 3,500 claims in the Ohio multi-district litigation and allows us to move forward with a renewed focus on our customers, product innovation, and application development.”
Chemours recently opted to stay in Delaware at the former DuPont headquarters. The building, which also includes the Hotel duPont will undergo a major renovation project with the new owners being Wilmington-based Buccini/Pollin group.
