In The Mix: Why DuPont’s C8 Trial Matters

How will DuPont handle this sticky situation and what will the fallout be for C8? We’re finding out on today’s In the Mix.

For decades, DuPont produced a chemical called perfluorooctanoic acid — commonly known as PFOA or C8. The chemical was key for making Teflon nonstick.

As far back as the 1960s DuPont knew that C-8 could be toxic. But in 1978 3M notified the company that workers exposed to C8, even at high levels, experienced no adverse health effects.

Now, a woman from Ohio, says that C8 is nevertheless the reason she got kidney cancer in 2002. The woman is one of many who lived near DuPont’s Washington Works plant who allege that the company knowingly contaminated drinking water near the plant and didn’t take the proper steps to notify the public about the danger.

Here are a few key implications for this case.

C8 on Trial
Right now, it’s not just DuPont that’s on trial — C8 is also in the hot seat.

In 2004, DuPont settled a class action case that spawned this recent wave of lawsuits, which led to a study of the potential health implications of C8 exposure. The scientists in that panel found six diseases that could “more likely than not” be linked to C8, including two types of cancer, high cholesterol, and thyroid disease.

In light of the findings, seven companies, including DuPont, have stopped producing C8, and have reformulated products including fabrics and food processing components. The EPA also now requires testing for the chemical — although the agency has yet to set an official drinking water standard for the chemical.

Will Chemours Face Bankruptcy?
In July, DuPont spun off its performance chemicals segment into a new company called Chemours. Now, that company, which took over the Teflon business, will be burdened with DuPont’s legal obligations related to C8.

If lawyers convince jurors that DuPont knowingly contaminated drinking water, they could weigh in favor of a settlement. And even though it may take multiple cases before DuPont faces a pact settlement, there are more cases on the way, with one scheduled for trial later this year.

According to one litigation analyst quoted in Bloomberg, based on past settlements of a similar nature, the exposure could be around $498 million — and any payout over $500 million could send Chemours into bankruptcy.

We’ll be following this case and the fate of C8 closely on Chem.Info, so check back for more. See you next time on In The Mix.

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