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States sue DuPont and Corteva to unwind seeds spinoff they say shields assets from PFAS claims

A 16-member coalition led by Indiana, including Vermont, Maine, Massachusetts, New Hampshire and Rhode Island, alleges the companies moved DuPont's most valuable business into a new company called Vylor while leaving its 'forever chemical' liabilities behind.

A coalition of 15 states and the government of Guam has sued the chemical company historically known as DuPont, its parent company Corteva and a newly created company called Vylor, alleging the companies fraudulently moved DuPont's most valuable business assets out of reach of creditors pursuing claims over PFAS contamination, the Vermont attorney general's office said.

The lawsuit, led by Indiana, was joined by Vermont, Maine, Massachusetts, New Hampshire, Rhode Island, Alaska, Florida, Maryland, New Mexico, Oregon, Pennsylvania, Tennessee, Texas and Washington, as well as Guam. The defendants include Indiana-based EIDP, the company historically known as DuPont.

According to the Vermont attorney general's office, DuPont and Corteva transferred their Pioneer seeds business, a major corn and soybean operation, to Vylor on Oct. 1. The states allege Vylor received about three-quarters of the value once held in DuPont and Corteva, and that the deal was structured so Vylor took on none of DuPont's PFAS liabilities, leaving DuPont with significantly fewer assets to pay the claims of the states and other creditors.

The states are asking a court in Marion County, Indiana, for a temporary restraining order freezing the assets. The proposed order would bar DuPont and Corteva from using remaining funds for dividends and stock buybacks and would bar Vylor from selling or pledging the seeds assets.

PFAS, known as forever chemicals, are humanmade compounds used since the 1950s in products that resist heat and repel oil, stains, grease and water. They do not break down easily and can contaminate drinking water, groundwater and soil.

Vermont filed two lawsuits against DuPont and other companies in 2019 over PFAS contamination of the state's natural resources. Both remain pending: one, involving firefighting foam, is part of multidistrict litigation in federal court in South Carolina, and the other is in federal district court in Vermont, the office said.

The claims in the lawsuit are allegations that have not been proven in court.

This brief was drafted by AI from a public agency or political press release and published by The New England Signal. Why we use AI for stories like this one.

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