US DuPont, Chemours to settle Teflon suit for $671m

HOUSTON (ICIS)–US-based major DuPont and Chemours have reached a settlement agreement to resolve all of the claims in a Teflon class-action lawsuit for $671m, the pigment and fluoropolymer producer said on Monday.

The claims number about 3,500, and they were filed in US District Court, Southern District of Ohio.

Under the settlement agreement, DuPont and Chemours will each pay $335.35m, Chemours said.

Moreover, DuPont’s payment will not be subject to indemnification or reimbursement by Chemours.

Chemours was spun off from DuPont. As part of that spin-off, Chemours had agreed to indemnify – or reimburse – DuPont for some of the company’s damages resulting from the Teflon claims.

Monday’s settlement resolves all of the indemnification obligations between the two companies in regards to the Teflon claims, Chemours said.

The claims involve the Teflon feedstock, perfluorooctanoic acid (PFOA) and its ammonium salt, called C-8.

They allege that the Teflon feedstock is toxic and caused the plaintiffs to develop cancer or other health problems.

Chemours became the owner of the Teflon business as part of its spin-off from DuPont. It also owns the Washington Works plant in Wood county in West Virginia, which used PFOA and its ammonium salt.

 The case number for the litigation is 2:13-cv-136.

Chemours shares jumped following the settlement’s announcement. By 9:45 Houston time (15.45 GMT), the firm’s stock was up 15.20% to $32.40.