A Chancery Court ruling rejected claims in a shareholder lawsuit filed against Chemours Co. over the issue of environmental liabilities.
The case stems from claims that DuPont did not fully disclose environmental liabilities when spinning off Chemours into a separate public company. Chemours is based in Wilmington at the former DuPont headquarters.
Concern over those liabilities led to shares in Chemours sinking for a time. Share prices later recovered.
Chemours made claims against DuPont for allegedly failing to fully disclose liabilities. However, Delaware courts ruled that the arbitration requirement remained valid in dealing with such issues.
Chemours, DuPont, and agribusiness spinoff Corteva later agreed to a formula to deal with environmental liabilities. The state of Delaware negotiated a separate agreement totaling tens of millions of dollars.
The decision from Vice Chancellor Sam Glasscock found no evidence that the Chemours board was negligent in dealing with environmental matters.
The shareholders’ suit made numerous claims of negligence by directors.
Shareholders can appeal the decision to the state Supreme Court.
Such suits are a frequent occurrence and sometimes result in the target company agreeing to a settlement
(See a copy of the ruling below)
https://storage.googleapis.com/delawarebusinessnow-cdn/2021/11/chemours-mtd-mo-final.pdf
