DuPont, Corteva, and Chemours Resolve Legacy PFAS claims
WILMINGTON, Del. — DuPont de Nemours Inc. (NYSE: DD), Corteva Inc. (NYSE: CTVA), and The Chemours Company (NYSE: CC) have entered into a binding memorandum of understanding containing a settlement to resolve legal disputes originating from the 2015 spin-off of Chemours from E. I. du Pont de Nemours and Company (EID) and to establish a cost-sharing arrangement and an escrow account to be used to support and manage potential future legacy per- and polyfluoroalkyl substances (PFAS) liabilities arising out of pre-July 1, 2015, conduct. The agreement replaces the February 2017 PFOA settlement and subsequent amendment to the Chemours Separation Agreement. In addition, DuPont, Corteva, and Chemours have agreed to resolve the ongoing matters in the multi-district PFOA litigation in Ohio.
According to the terms of the cost-sharing arrangement, DuPont and Corteva together, on one hand, and Chemours, on the other hand, agree to a 50-50 split of certain qualified expenses incurred over a term not to exceed 20 years or $4 billion of qualified spend and escrow contributions in the aggregate. DuPont and Corteva's 50% will be limited to $2 billion, including qualified expenses and escrow contributions. Under the existing letter agreement from June 1, 2019, DuPont and Corteva will each bear 50% of the first $300 million (up to $150 million each) and thereafter, DuPont bears 71% and Corteva bears the remaining 29%. DuPont's share of the potential $2 billion would be approximately $1.36 billion and Corteva's approximately $640 million.