California Just Named DuPont's Newest Spinoff in Its PFAS Lawsuit — Alleging a Pattern of Moving Liabilities Out of Reach
California Attorney General Rob Bonta filed a second amended complaint in the state's PFAS litigation, alleging DuPont, Corteva, Chemours, and DuPont's newest spinoff, Qnity Electronics, are part of a continuing fraudulent transfer scheme designed to shift liabilities onto the entity with the fewest assets.
- California Attorney General Rob Bonta filed a Second Amended Complaint in the state's PFAS litigation, alleging new wrongful conduct as part of a continuing fraudulent transaction scheme involving New DuPont, Corteva, Chemours, and DuPont's newest spinoff, Qnity Electronics.
- Bonta's office said the DuPont defendants "cannot game the system by illegally moving assets out of reach, dodging liabilities for the harm they have caused, and calling it restructuring."
- The complaint alleges the companies entered into a memorandum of understanding designed to shift the overwhelming majority of PFAS-related liabilities onto Chemours — the entity with the least amount of assets — while limiting exposure for Corteva and New DuPont.
Reaction by asset (real prices)
| Asset | 2m before | At release | +1m | +15m | +1m % | +15m % |
|---|---|---|---|---|---|---|
| DD | — | — | — | — | -1.36% | -0.89% |
California Attorney General Rob Bonta filed a Second Amended Complaint in the U.S. District Court for the District of South Carolina, alleging new wrongful conduct as part of what the complaint describes as a continuing fraudulent transaction scheme involving New DuPont, Corteva, Chemours, and DuPont's newest spinoff, Qnity Electronics. Bonta's office framed the filing bluntly, stating the DuPont defendants cannot game the system by illegally moving assets out of reach and calling it restructuring.
The core allegation is that the companies entered into a memorandum of understanding designed to shift the overwhelming majority of PFAS-related liabilities onto Chemours — the entity in the corporate family with the least amount of assets — while limiting exposure for Corteva and New DuPont. The complaint further alleges that MOU was later amended to diminish Chemours' assets even more, by transferring insurance coverage elsewhere. If accurate, that sequence describes a liability-isolation strategy executed in stages, not a single restructuring event.
The legal theory extends back to 2015, when DuPont originally spun off its performance chemicals division — including its PFAS operations — into Chemours. Critics and plaintiff attorneys have long alleged that spinoff was structured specifically to separate DuPont's legacy PFAS liability from its core business while the newly created, thinner-capitalized Chemours entity absorbed the legal exposure. This amended complaint applies that same theory to DuPont's most recent corporate action: it asks the court to name Qnity Electronics, DuPont's newest spinoff, as a defendant and to void the underlying business transfers.
Naming a brand-new spinoff in litigation built around an 11-year-old restructuring is a signal California's case has evolved from disputing what happened in 2015 to arguing DuPont has continued the same liability-shifting pattern with every subsequent corporate separation since — a materially broader legal theory than the original PFAS contamination claims the litigation started with.
Sources
-
Attorney General Bonta Files Second Amended Complaint in PFAS Litigation Alleging New Fraudulent Transfers by DuPont Defendants
— California Department of Justice (Attorney General's office)
Official complaint filing details and AG statement
-
California looks to bring DuPont spinoff into PFAS lawsuit
— E&E News (Politico)
Qnity Electronics naming and 2015 Chemours spinoff background
Never miss the next market-moving story
Follow the core market-moving feed across equities, macro, currencies and commodities. Your subscription includes price moves after the news, search, watchlists, alerts and research tools.
Create free accountGo real time Watch live headlines -- free