3M, DuPont Stocks Are Soaring on PFAS Settlement. A Big Overhang Is Gone.
Updated June 2, 2023 3:58 pm ET / Original June 2, 2023 2:23 pm ET-
Shares of 3M MMM +8.75% and the DuPont DD +7.31% family of companies are up, a lot, in Friday trading. There has been positive movement on litigation related to so-called PFAS chemicals that have been found in ground water.
On Friday, DuPont (ticker: DD), Chemours CC +24.09% (CC), and Corteva CTVA +3.82% (CTVA) announced a settlement with water providers across much of the U.S. The three will contribute about $1.2 billion to a settlement fund. That money can be used to monitor and clean up PFAS. (The three companies are involved because they were once part of a larger DuPont.)
PFAS litigation has been an overhang for years. The settlement is an important market for investors looking to size the total liability.
PFAS, short for per- and polyfluoroalkyl substances, were manufactured in the U.S. from the 1940s through 2000. They are long-lasting, and can continue to harm people’s health, according to the Environmental Protection Agency. States and municipalities are cleaning up sites involved in the manufacture of the chemicals, while governments are pursuing liability suits seeking money from producers.
DuPont stock is up 7.7%. Chemours and Corteva shares have gained 24.3% and 4.1%, respectively. The moves have added about $5 billion in market value to the three companies. The change in Chemours is larger because it has the smallest market capitalization of the three by far.
Chemours will contribute about 50% of the money. DuPont will contribute about 34% to the fund, with Corteva contributing about 16%.
The settlement doesn’t cover personal-injury litigation or litigation from state attorneys general. Still, the market is happy because there is some certainty on part of the liability and because the settlement is nine figures and not 10 figures.
Updated June 2, 2023 3:58 pm ET / Original June 2, 2023 2:23 pm ET-
Shares of 3M MMM +8.75% and the DuPont DD +7.31% family of companies are up, a lot, in Friday trading. There has been positive movement on litigation related to so-called PFAS chemicals that have been found in ground water.
On Friday, DuPont (ticker: DD), Chemours CC +24.09% (CC), and Corteva CTVA +3.82% (CTVA) announced a settlement with water providers across much of the U.S. The three will contribute about $1.2 billion to a settlement fund. That money can be used to monitor and clean up PFAS. (The three companies are involved because they were once part of a larger DuPont.)
PFAS litigation has been an overhang for years. The settlement is an important market for investors looking to size the total liability.
PFAS, short for per- and polyfluoroalkyl substances, were manufactured in the U.S. from the 1940s through 2000. They are long-lasting, and can continue to harm people’s health, according to the Environmental Protection Agency. States and municipalities are cleaning up sites involved in the manufacture of the chemicals, while governments are pursuing liability suits seeking money from producers.
DuPont stock is up 7.7%. Chemours and Corteva shares have gained 24.3% and 4.1%, respectively. The moves have added about $5 billion in market value to the three companies. The change in Chemours is larger because it has the smallest market capitalization of the three by far.
Chemours will contribute about 50% of the money. DuPont will contribute about 34% to the fund, with Corteva contributing about 16%.
The settlement doesn’t cover personal-injury litigation or litigation from state attorneys general. Still, the market is happy because there is some certainty on part of the liability and because the settlement is nine figures and not 10 figures.
