WILMINGTON, Del., Jan. 22, 2021 /PRNewswire/ -- DuPont de
Nemours, Inc. (NYSE: DD), Corteva, Inc. (NYSE: CTVA) and The
Chemours Company (NYSE: CC) today announced they 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 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 twenty years or $4
billion of qualified spend and escrow contributions in the
aggregate. DuPont and Corteva's 50 percent 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 percent of the first $300 million (up to $150
million each) and thereafter, DuPont bears 71 percent and
Corteva bears the remaining 29 percent. DuPont's share of the
potential $2 billion would be
approximately $1.36 billion and
Corteva's approximately $640 million.
In connection with the cost sharing arrangement described above,
the companies also agree to establish a $1
billion maximum escrow account to address potential future
PFAS liabilities. Subject to the terms of the arrangement,
contributions to the escrow will be made by Chemours, on one hand,
and DuPont and Corteva, on the other hand, annually over an
eight-year period. Over such period, Chemours will deposit a
total of $500 million into the
account and DuPont and Corteva will deposit an additional
$500 million pursuant to the terms of
their existing Letter Agreement. The escrow provides for a one-time
replenishment mechanism if the escrow account balance has less than
$700 million at December 31, 2028.
After the term of this arrangement, Chemours' indemnification
obligations under the Chemours Separation Agreement would continue
unchanged, subject to certain exceptions set forth in the
memorandum of understanding.
Chemours will waive specified claims, including claims regarding
the construct of its 2015 spin-off from EID. DuPont, Corteva and
Chemours will dismiss the pending arbitration regarding those
claims.
In addition, DuPont, Corteva and Chemours have agreed to resolve
the matters in the Ohio
multi-district PFOA litigation for $83
million. DuPont will contribute $27
million, Corteva will contribute $27
million and Chemours will contribute $29 million to the settlement. The agreement
resolves approximately 95 pending cases as well as unfiled matters.
The case of Travis and Julie Abbott
v. E.I. du Pont de Nemours and Company is not included in the
settlement and is presently pending appeal. These amounts are not
subject to the new cost sharing arrangement.
Ed Breen, DuPont Chairman and
CEO; Jim Collins, Corteva CEO and
Mark Vergnano, Chemours President
and CEO commented on the agreement:
"We are pleased to have reached a settlement agreement between
our companies related to potential legacy PFAS liabilities, as well
as resolving the remaining PFOA MDL cases in Ohio. The agreement will provide a measure of
security and certainty for each company and our respective
shareholders using a transparent process to address and resolve any
potential future legacy PFAS matters."
About DuPont
DuPont (NYSE: DD) is a global innovation leader with
technology-based materials, ingredients and solutions that help
transform industries and everyday life. Our employees apply diverse
science and expertise to help customers advance their best ideas
and deliver essential innovations in key markets including
electronics, transportation, construction, water, health and
wellness, food and worker safety. More information about the
company, its businesses and solutions can be found at
www.dupont.com. Investors can access information included on the
Investor Relations section of the website at
investors.dupont.com.
About Corteva
Corteva, Inc. (NYSE: CTVA) is a publicly traded, global
pure-play agriculture company that provides farmers around the
world with the most complete portfolio in the industry - including
a balanced and diverse mix of seed, crop protection and digital
solutions focused on maximizing productivity to enhance yield and
profitability. With some of the most recognized brands in
agriculture and an industry-leading product and technology pipeline
well positioned to drive growth, the company is committed to
working with stakeholders throughout the food system as it fulfills
its promise to enrich the lives of those who produce and those who
consume, ensuring progress for generations to come. Corteva became
an independent public company on June 1,
2019, and was previously the Agriculture Division of
DowDuPont. More information can be found at
www.corteva.com.
About The Chemours Company
The Chemours Company (NYSE: CC) is a global leader in Titanium
Technologies, Fluoroproducts, and Chemical Solutions, providing its
customers with solutions in a wide range of industries with
market-defining products, application expertise and chemistry-based
innovations. Chemours ingredients are found in plastics and
coatings, refrigeration and air conditioning, mining, and general
industrial manufacturing. Our flagship products include prominent
brands such as Teflon™, Ti-Pure™, Krytox™, Viton™, Opteon™, Freon™
and Nafion™. In 2019, Chemours was named to Newsweek's list of
America's Most Responsible Companies. The company has approximately
7,000 employees and 30 manufacturing sites serving approximately
3,700 customers in over 120 countries. Chemours is headquartered in
Wilmington, Delaware and is listed
on the NYSE under the symbol CC. For more information, we invite
you to visit chemours.com.
DuPont™, the DuPont Oval Logo, and all trademarks and service
marks denoted with ™, SM or ® are owned by
affiliates of DuPont de Nemours, Inc. unless otherwise noted.
Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of the federal securities laws, including
Section 27A of the Securities Act, and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
Forward-looking statements are based on certain assumptions and
expectations of future events that may not be accurate or realized
and often contain words such as "expect," "anticipate," "intend,"
"plan," "believe," "seek," "see," "will," "would," "estimate",
"target," similar expressions, and variations or negatives of these
words. Forward-looking statements by their nature address matters
that are, to different degrees, uncertain, such as statements about
expected performance under and impact of the cost sharing
arrangement by and between DuPont, Corteva and Chemours related to
future eligible PFAS liabilities. Factors that could cause or
contribute to these differences include, but are not limited to:
the achievement, terms and conditions of final agreements related
to the cost sharing arrangement; the outcome of any pending or
future litigation related to PFAS or PFOA, including personal
injury claims and natural resource damages claims; the extent and
cost of ongoing remediation obligations and potential future
remediation obligations; changes in laws and regulations applicable
to PFAS chemicals; the performance by each of the parties of their
respective obligations under the cost sharing
arrangement. Unlisted factors may present significant
additional obstacles to the realization of forward-looking
statements. Further lists and descriptions of risks and
uncertainties can be found in each of DuPont's, Corteva's and
Chemours' respective annual report on Form 10-K for the year ended
December 31, 2019, and each of
DuPont's, Corteva's and Chemours' respective subsequent reports on
Form 10-Q, Form 10-K and
Form 8-K, the contents of which are not incorporated by
reference into, nor do they form part of, this announcement.
Consequences of material differences in results as compared with
those anticipated in the forward-looking statements could include,
among other things, business disruption, operational problems,
financial loss, legal liability to third parties and similar risks,
any of which could have a material adverse effect on each of
DuPont's, Corteva's or Chemours' respective consolidated financial
condition, results of operations, credit rating or liquidity. None
of DuPont, Corteva or Chemours assumes any obligation to publicly
provide revisions or updates to any forward-looking statements,
whether as a result of new information, future developments or
otherwise, should circumstances change, except as otherwise
required by securities and other applicable laws.
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SOURCE DuPont