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California alleges DuPont used spin-off companies to avoid PFAS liability 

Photo credit: Shutterstock - Nonstick cookware often uses per- and polyfluoroalkyl substances (PFAS). An updated lawsuit from California is the first to target two deals between DuPont and Chemours in 2021 and 2025 that left Chemours with a majority of DuPont’s PFAS liabilities.

Read the full article by Bec Roldan (C&EN)

“DuPont and three of its spin-off companies engaged in a corporate restructuring scheme to avoid per- and polyfluoroalkyl substances (PFAS) liability and related claims, California attorney general Rob Bonta alleges in a recent legal filing (PDF).

‘Specifically, the companies entered into a memorandum of understanding (MOU) designed to shift the overwhelming majority of liabilities onto Chemours (the company with the least amount of assets) and to limit the liability of Corteva, New DuPont and Qnity,’ Bonta says in an Aug. 6 press release.

This original MOU, as well as a follow-up MOU in 2025, ‘transferred valuable assets away from Chemours in a flagrant attempt to put them out of reach of creditors like California,’ Bonta says. He alleges that this restructuring and passing on of liabilities to Chemours violates state fraudulent transfer laws that seek to prevent companies in financial trouble from unfairly transferring away assets, in this case to avoid paying liabilities related to PFAS.”…

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