Chemours (NYSE:CC) shares rose 6% on Thursday after the company announced a settlement with the State of North Carolina and 11 local entities covering PFAS-related claims.
The agreement resolves litigation concerning PFAS and other historical discharges from the Fayetteville Works facility, as well as claims involving alleged PFAS contamination unrelated to the site, including the use of aqueous film forming foam.
Total settlement payments will amount to $455 million over 15 years. Chemours will be responsible for 50% of the payments, representing approximately $180 million on a net present value basis. The company said its payments are covered by existing accruals, with approximately $50 million expected to be paid over the next 12 months.
DuPont de Nemours and Corteva will be responsible for the remaining 50% of the settlement payments, in accordance with a January 2021 memorandum of understanding between the three companies.
Settlement Covers Fayetteville Works and Other PFAS Claims
The settlement acknowledges measures undertaken under Chemours’ 2019 Consent Order with North Carolina, including reductions in PFAS emissions from Fayetteville Works and efforts to mitigate off-site impacts in surrounding communities.
The agreement also establishes procedures covering certain remaining obligations in off-site areas, including the implementation of drinking water programmes.
Of the $455 million total settlement, $18 million relates to alleged PFAS contamination not associated with Fayetteville Works.
The settlement remains subject to the entry of dismissals in the covered litigation.
The 11 local entities covered by the agreement are Bladen County, Brunswick County, Columbus County, Cumberland County, New Hanover County, Robeson County, Sampson County, the Town of Wrightsville Beach, the City of Lumberton, the Village of Bald Head Island and the Lower Cape Fear Water and Sewer Authority.
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