US states challenge Corteva spinoff as bid to evade PFAS liabilities
CTVA•Fifteen states and Guam sued Corteva, alleging its completed spinoff of seed and genetics business Vylor was designed to shield assets from potential PFAS liabilities worth tens of billions of dollars. Vylor’s CEO said the company is targeting net sales of $11.2 billion to $11.9 billion by 2029.
1. States challenge spinoff
Fifteen states and Guam sued Corteva in Indiana state court, alleging its spinoff of seed and genetics business Vylor was designed to transfer valuable assets while leaving PFAS liabilities behind. Corteva completed the spinoff on Thursday.
2. Claims and response
The lawsuit alleges Vylor received Corteva’s “crown jewels” without responsibility for PFAS contamination, and characterizes the transaction as an effort to defraud creditors pursuing claims against former DuPont entities. Corteva said in September that the states’ claims are “speculative and unproven,” adding that Corteva never made or sold PFAS products.
3. California action and outlook
A federal judge in South Carolina on Wednesday rejected California’s emergency request to stop the spinoff. Corteva said it will focus on crop protection, while Vylor takes on the seed business; Vylor CEO Chuck Magro said the company is targeting net sales of $11.2 billion to $11.9 billion by 2029.
