Hello everyone,
DuPont was in the news this week. as Chancery Court threw out a suit from Chemours, a company that was spun off from DuPont.
Chemours claimed that DuPont had undertaken actions that nullified a provision of the spin-off agreement that required disputes to go to arbitration.
Chemours has accused DuPont of understating liabilities in businesses that became part of Chemours.
The presence of “forever” chemicals used in making nonstick substances and firefighting foam remains at the heart of the issue.
Critics have long claimed the Chemours spin-off was a way for DuPont to reduce potentially crippling liability costs. The company has repeatedly denied the accusations.
DuPont appeared to shake off any blowback from Dark Waters. The movie focused on a lawyer’s tireless efforts to take on the company over discharges at a West Virginia plant. The film grossed a paltry $21 million at the box office.
More recently, U.S. Sen. Kelly Loeffler, R-Georgia, disclosed the purchase of stock in DuPont Co.
It followed earlier sales of stock prior to the sharp downturn in the market. Loeffler is a former executive and her husband is CEO of the company that controls the New York Stock Exchange.
Stock sales among the wealthy are no big deal, but the question is whether Loeffler and/or here husband had inside information.
DuPont is a supplier of protective suits needed in fighting the coronavirus pandemic and played a key role in the Ebola crisis.
Demand is strong, to put it mildly.
Health care providers and governors are struggling to secure supplies and have been playing premium prices.
Loeffler, who is facing a Republican primary challenger, said she had no involvement in the sale. Her husband is chairman of the New York Stock Exchange. Earlier, it was disclosed that Loeffler and her husband were selling off stocks.
DuPont has its plants running flat out in making protective suits. Still, a surge in sales is not a game-changer for a company with $21 billion in annual sales and an array of businesses taking a beating from the coronavirus pandemic.
The share price of DuPont has slid from $72 in November to about $32 on Friday. That was the reason for the DuPont stock buy. As for Loeffler’s stock sales, expect more speculation and scrutiny.
Stay safe.
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