DuPont, Chemours reach agreement over 'forever chemicals'

DOVER, Del. (AP) — The Dupont Co. and its spinoff business Chemours have agreed to resolve legal disputes over environmental liabilities for pollution related to man-made chemicals associated with an increased risk of cancer and other health problems.

The binding memorandum of understanding announced Friday comes just over a month after Delaware’s Supreme Court upheld the dismissal of a lawsuit alleging that DuPont massively downplayed the cost of environmental liabilities imposed on Chemours when DuPont spun off its former performance chemicals unit in 2015.

The chemicals at issue are known as per- and polyfluoroalkyl substances, or PFAS. They include perfluorooctanoic acid, or PFOA, which was used in the production of Teflon, and have also been used in firefighting foam, water-repellent clothing and many other household and personal items. They sometimes are referred to as “forever chemicals” because of their longevity in the environment.

The memorandum resolves legal disputes originating from the spinoff and establishes a cost-sharing arrangement and escrow account for potential future legacy PFAS liabilities arising out of pre-July 1, 2015 conduct.

DuPont, Chemours and Corteva, an independent public company that was previously the agriculture division of DowDuPont, also have agreed to resolve about 95 pending cases, as well as other unfiled matters, in multidistrict PFOA litigation in Ohio. The $83 million settlement will be split roughly equally among the three companies. It does not include a case that resulted in a $50 million jury verdict in March that DuPont is appealing.

Under the cost-sharing arrangement, DuPont and Corteva, on one hand, and Chemours, on the other, agree to a 50-50 split of certain expenses incurred over a term not to exceed 20 years, or an aggregate $4 billion of qualified...