Major chemical companies to shell out $875 million in compensation following PFAS contamination settlement in New Jersey
In a significant development, chemical manufacturers DuPont, Chemours, and Corteva have agreed to a historic $875 million settlement with the state of New Jersey, resolving multiple lawsuits related to PFAS contamination. This settlement, payable over 25 years, is the largest environmental settlement ever achieved by a single state and addresses claims of environmental damage caused by PFAS pollution.
The settlement, announced on Monday, sees DuPont covering 35.5% of the settlement, Chemours paying 50%, and Corteva contributing the remaining 14.5%. The funds will be used to clean up decades of PFAS pollution, with $16.5 million specifically allocated to contamination not linked to the companies' operating sites.
This settlement is one of the largest state-level environmental settlements to date and is part of a broader trend in PFAS litigation. In federal litigation, there are over 10,000 active cases involving PFAS contamination, including extensive claims linked to aqueous film-forming foam (AFFF) used in firefighting.
Judges overseeing PFAS mass tort cases are encouraging settlements before the first bellwether trials scheduled in late 2025. This trend is further evidenced by other companies' settlements, such as 3M's $450 million settlement with New Jersey and BASF's $316.5 million settlement for PFAS contamination claims.
Legal experts anticipate a global settlement framework for many PFAS water contamination lawsuits. Under such deals, settlement amounts vary by the severity of injury and strength of claims, with top-tier claimants potentially receiving from approximately $150,000 to $375,000, and second-tier claimants receiving lesser amounts based on exposure and medical conditions.
The landscape of PFAS litigation remains fluid, with regulatory reassessments and upcoming bellwether trials likely shaping future negotiation and settlement outcomes. The EPA is revising its hazardous substance designations related to PFAS, with litigation on these designations temporarily stayed to allow for agency review.
With new federal regulations on PFAS in drinking water and a deeper understanding of the chemical's long-term effects, more lawsuits and multibillion-dollar settlements are anticipated. The present value of the payments, before taxes, is roughly $500 million, and they will begin no earlier than January 1, 2026.
The three companies have previously settled similar claims with the state of Ohio for $110 million in 2023 and have collectively paid $1.19 billion to settle a national lawsuit with U.S. water providers in an unspecified year. New Jersey has repeatedly sued chemical manufacturers over alleged PFAS contamination, and the New Jersey settlement does not specify any new payments or allocations beyond the previously mentioned $875 million over 25 years.
The New Jersey settlement is expected to be the beginning of more state-led action against PFAS pollution. PFAS, or per- and polyfluoroalkyl substances, are used in various products, including non-stick cookware, firefighting foams, and industrial products. They have become a major environmental and public health concern due to their resistance to breakdown and association with health issues like cancer, hormonal disorders, and developmental problems.
Monday's settlement provides a significant financial commitment to cleaning up decades of PFAS pollution, but the legal and environmental fight over PFAS is far from over for many impacted communities.
- The funding from the New Jersey settlement, which is part of a broader trend in PFAS litigation, will be allocated towards cleaning up decades of PFAS pollution, with some money specifically earmarked for contamination not linked to the companies' operating sites.
- In the realm of environmental science, the ongoing PFAS litigation involves over 10,000 active cases in federal courts, including extensive claims linked to aqueous film-forming foam (AFFF) used in firefighting, and other industries like chemistry.
- Finance experts predict that the settlement framework for PFAS water contamination lawsuits, such as the one seen in the New Jersey case, will likely involve varying settlement amounts based on the severity of injury and strength of claims, with top-tier claimants potentially receiving from $150,000 to $375,000.
