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Chemours Shareholder Suit Over DuPont Spinoff Liabilities Dismissed

  • Suit claimed board misled on the ex-DuPont unit’s prospects
  • Judge found there was no evidence of misconduct by directors
    
Photographer: Krisztian Bocsi/Bloomberg
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A Delaware judge dismissed a suit by Chemours Co. shareholders alleging directors misled them about the company’s financial health and legal liabilities when it was spun off from a predecessor of DuPont de Nemours Inc.

Chemours shareholders can’t show misleading statements by directors left them facing “a substantial likelihood of liability,” a Delaware Chancery Court judge concluded on Monday. The company was created in large part to wall off the rest of DuPont from lawsuits over environmental harm and health risks from a class of chemicals known as PFAS.

“I find that the facts pled” in the investors’ suits don’t lay out evidence of “willful or negligent misconduct,” Judge Sam Glasscock III said in his 63-page ruling. Greg Varallo, a lawyer for some of Chemours investors, declined to comment on Glasscock’s ruling.

Following the ruling, Chemour shares were up nearly 4% to $29.10 at mid-day on Monday.

Chemours was sued by investors after agreeing earlier this year to a $4 billion settlement with DuPont and Corteva Inc. to cover liabilities tied to PFAS, a chemical used in making DuPont products such as Teflon. Under the agreement, DuPont and Corteva will split “certain qualified expenses” 50-50 with Chemours, the companies said. They specified expenses incurred over 20 years or totaling $4 billion at most.