The company's press release also said that, to address future C8 liabilities that might arise, DuPont and Chemours have agreed that, for a period of five years, Chemours would annually pay C8 liabilities of up to $25 million on top of the settlement amount.
The cases are pending in U.S. District Court in Columbus, Ohio, where in the latest of three trials so far a federal jury ordered DuPont to pay $2 million in compensation and $10.5 million in punitive damages to a Washington County, Ohio, man who contracted testicular cancer after being exposed to the company's C8 pollution.
The settlement releases both DE companies of all claims - including those in which a jury verdict has already been rendered - in the multidistrict litigation now pending in an OH federal court. Fears that liabilities for the Ohio Valley PFOA cases could reach as much as $5 billion and disrupt merger plans appear to have been put aside with the $670 million settlement. Shares of both companies fell after that verdict, but Chemours has recently risen to historic highs on rising sales from its DuPont legacy businesses.
The deal will fund settlement of lawsuits against the companies for exposing workers and neighbors of its OH and West Virginia plants to perflourooctanoic acid (PFOA, C8), which DuPont formerly used in making the popular low-friction material teflon. Both Chemours and DuPont denied any wrongdoing as part of the settlement. DuPont will cover future liabilities up to an additional $25 million per year.
DuPont will split the costs of settling thousands of lawsuits with Chemours, the company that split out of DuPont in 2015. Dupont purchased C8 from 3M from the 1950s through 2000, then manufactured it itself before eventually discontinuing its use.
Chemours has also agreed that, upon the settlement becoming effective, it will not contest its liability to DuPont for PFOA costs if Chemours believes the costs are generally applicable to the indemnification provisions under its agreement to separate from DuPont.