DuPont has settled a case involving about 3,550 lawsuits alleging personal injuries from chemical releases from the Washington Works plant in West Virginia.
Analysts at CreditSights said they were expecting a $200M-$400M settlement, with DuPont paying part of the total but with DuPont paying half, the firm says the net liability for Chemours is within expectations; "for Chemours, the settlement is manageable and significantly less than many investors were modeling in", CreditSights says. Both companies denied any wrongdoing.
"This agreement provides a sound resolution for area residents, Chemours, and the public", said David C. Shelton, general counsel of Chemours.
In the two previous trials, one jury awarded Carla M. Bartlett, who had kidney cancer, $1.6 million in compensatory damages. The cost will be split equally between DuPont and Chemours, a company that spun off from DuPont in 2015 and took with it the company's "performance chemicals" division.
About 3,550 lawsuits have been filed in federal and state courts in OH and West Virginia alleging injury from exposure to perfluorooctanoic acid in drinking water.
The federal court lawsuits filed against DuPont come after a three-person panel of scientists finished a six-year study of C8 and concluded there were probable links between exposure to the chemical and certain human illnesses. Chemours and DuPont have agreed to pay up to $25 million a year, for five years, to cover future claims, with DuPont paying the next $25 million if needed. "It settles all indemnification obligations between Chemours and DuPont for all of the approximately 3,500 claims" the companies faced, "and allows us to move forward". After the five-year period, Chemours' indemnification obligation under its spin-off agreement with DuPont will continue unchanged and DuPont has no commitment to fund future PFOA costs. The arrangement will also pay for the jury verdicts, according to DuPont.