© Reuters. DuPont, Chemours, Corteva shares rally following PFAS Settlement
Chemours (NYSE:), Dupont (NYSE:) and Corteva (NYSE:), announced Friday that they have reached an agreement in principle to resolve all PFAS-related drinking water claims.
The companies will collectively establish and contribute $1.185 billion to a settlement fund, with contribution rates consistent with the Memorandum of Understanding between the companies reached in January 2021. Chemours is contributing 50% (about $592M), with DuPont (about $400M) and Corteva (about $193M) contributing the remaining 50% to the fund.
Chemours shares surged 18% Friday, while DuPont is up 6% and Corteva has risen 2%.
Following the news, Mizuho analysts said that their immediate reaction is that the $1.185B is materially below investors’ fears and should capture the overwhelming majority of cases.
“There will inevitably remain a significant degree of debate re: US state, as well a small # of residual personal injury claims, but the vast scope of the agreement appears sound,” said analysts. “We’re incrementally more confident DD’s ultimate PFAS liability will remain in the limits of the MOU.”