Fifteen U.S. states and Guam have sued Corteva, alleging that the company moved valuable agricultural assets into a separate business to shield them from the responsibility of significant PFAS-related pollution risks.
Here's what to know
A bipartisan coalition of state attorneys general and Guam filed suit in Indiana state court, arguing that Corteva structured the Vylor spinoff to separate its seed and genetics business from potential PFAS liabilities that could run into the tens of billions of dollars, Insurance Journal reported.
Corteva, which came out of the Dow Chemical and DuPont merger, has been named in thousands of lawsuits connected to DuPont's decades-long production and sale of PFAS-containing chemicals. In the new case, the states say Vylor took on the "crown jewels" of Corteva's business without taking responsibility for contamination linked to PFAS. These substances are often called "forever chemicals" because they do not break down in the environment.
According to the lawsuits, PFAS contamination may have endangered the health of millions of Americans, per Insurance Journal. Corteva said it never made or sold PFAS products and described the states' PFAS claims as "speculative and unproven."
More background
The fight also turns on Corteva's corporate lineage. After Corteva was spun off as an independent company from DuPont, it assumed some responsibility related to DuPont's PFAS liabilities. The states now contend that one of Corteva's most profitable businesses was placed into Vylor while those liabilities remained behind.
California had mounted a separate effort to stop the Vylor transaction, but that bid failed in federal court. A federal judge in South Carolina rejected the state's emergency request, and Corteva completed the spinoff, Insurance Journal noted.
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What's being done?
In the Indiana case, the 15 states and Guam want a judge to determine whether the Vylor spinoff improperly put valuable assets beyond the reach of creditors seeking recovery on PFAS claims against former DuPont entities.
After the split, Corteva said it would concentrate on protecting crops from weeds, pests, and diseases, while Vylor assumed the seed business. Vylor CEO Chuck Magro said the new company is looking to "reimagine agriculture," including by addressing food security and energy security, and is seeking net sales of $11.2 billion to $11.9 billion by 2029, according to the outlet.
"Companies cannot simply move valuable assets out of reach and leave states, communities, and taxpayers to deal with the liabilities left behind," New Hampshire Attorney General John Formella said.
Where can I learn more?
PFAS litigation stretches far beyond Corteva. States, water agencies, and communities are pursuing chemical makers over contamination and cleanup costs.
• New York sued 3M, DuPont, and others, alleging risks were hidden for decades.
• California sued DuPont and 3M, saying toxic chemicals tainted communities across the state.
• Water agencies said major manufacturers left widespread toxic contamination with no easy cleanup.
• In Dalton, Georgia, families alleged catastrophic levels of toxic chemicals threatened household water.
• Maryland sued Gore-Tex manufacturer W.L. Gore over a toxic legacy in local waterways.
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