DuPont Agrees to $875M Settlement with New Jersey: Key Takeaways

DuPont de Nemours agreed to a $875 million settlement with New Jersey to resolve environmental claims related to historical contamination. The settlement includes a 25-year payment plan and obligates the companies to continue remediation efforts at four sites. This agreement may impact the companies' financial reserves and environmental responsibilities. The analyst rating on DuPont de Nemours stock is a Buy with a $104 price target.

DuPont de Nemours, along with its subsidiaries, has agreed to a $875 million settlement with the State of New Jersey to resolve environmental claims related to historical contamination. The settlement, which is subject to court approval and public notice, includes a 25-year payment plan and obligates the companies to continue remediation efforts at four sites.

The settlement addresses various claims, including those related to legacy use of substances such as dense non-aqueous phase liquids, chemical solvents, and PFAS (per- and polyfluoroalkyl substances) at four former EIDP operating sites—Chambers Works, Parlin, Pompton Lakes, and Repauno. It also covers claims under the New Jersey Industrial Sites Recovery Act, alleged statewide PFAS contamination including from aqueous firefighting foam, claims of fraudulent transfer, and known natural resource damages [1].

The cash payment will total $875 million over a 25-year period, beginning within 30 days of the JCO entry date, which will be no earlier than January 1, 2026. The pre-tax net present value of the settlement payments is approximately $500 million. Chemours will be responsible for 50% of the settlement payments, DuPont for 35.5%, and Corteva for 14.5% [1].

DuPont has recorded a $177 million pre-tax charge for its share of the settlement. Additionally, DuPont and Corteva will establish a Reserve Fund based on their respective cost-sharing percentages, capped at $475 million, to serve as further financial security. The Reserve Fund will be accessible only under limited conditions detailed in the settlement [1].

The settlement also includes a process for determining the amount of the Remediation Funding Source (RFS) at the four current and former operating sites and other mechanisms to secure future remediation at the sites. The RFS will be secured by a surety bond or similar instrument [1].

In addition to the settlement payments, DuPont and Corteva will purchase from Chemours for $150 million Chemours' rights to receive certain insurance proceeds related to PFAS claims. After DuPont and Corteva have recovered the $150 million, plus a fee, Chemours will be entitled to its 50% share of further insurance recoveries [1].

The terms of the settlement are set forth in a proposed Judicial Consent Order (JCO), which remains subject to notice and comment pursuant to New Jersey law, as well as final court approval [1].

This settlement may impact the companies' financial reserves and environmental responsibilities. The analyst rating on DuPont de Nemours stock is a Buy with a $104 price target [4].

References:
[1] https://www.ainvest.com/news/dupont-reaches-875m-settlement-jersey-legacy-substances-2508/
[2] https://www.marketscreener.com/news/dupont-de-nemours-chemours-corteva-reach-875-million-environmental-claims-settlement-with-new-jer-ce7c5edadd8ff524
[3] https://newjerseymonitor.com/2025/08/04/nj-reaches-2b-proposed-settlement-over-dupont-contamination/
[4] https://site.financialmodelingprep.com/market-news/dupont-de-nemours-nyse-dd-stock-analysis