DuPont, Chemours and Corteva settle PFAS claims tied to Fayetteville Works

What the settlement resolves

DuPont, Chemours and Corteva entered a settlement with the State of North Carolina and 11 local entities resolving litigations related to PFAS and other historical discharges from the Fayetteville Works facility and the State’s PFAS claims unrelated to that site, including alleged contamination from AFFF.

Financial terms

Settlement payments total $455 million, payable over 15 years beginning within 30 days of the agreement’s execution. The companies state the net present value of the settlement is approximately $355 million to be shared among them. Of the total, $18 million is attributed to alleged PFAS contamination unrelated to Fayetteville Works, with up to $14.4 million (approximately 3%) ascribed to AFFF.

Allocations and accounting

DuPont’s pre-tax present value share is approximately $126 million, of which 44% will be reimbursed by Qnity Electronics and which the company says is materially covered by existing accruals. The Settlement Agreement describes claims released and not released and remains subject to entry of dismissals of the covered litigations.

MOU and escrow implications

The parties agreed on MOU valuation conventions, treating the settlement and potential future settlements at net present value as if payable in equal annual installments over 25 years and discounted at 8% for qualified spend calculations. Aggregate New Jersey and North Carolina settlement payments will qualify for withdrawal from the parties’ MOU escrow account and exceed required future escrow contributions, such that those contributions—including a contribution otherwise due in September 2026—will be considered satisfied by the settlement payments.