Pending final approval, first payment distribution scheduled for March 2025
CHARLESTON, S.C., May 21, 2024 /PRNewswire/ -- In the continued effort to mitigate the impact of PFAS contamination, co-lead attorneys for MDL No. 2873 In Re: Aqueous Film-Forming Foam (AFFF) Products Liability Litigation (D.S.C) announce a $316.5 million agreement in principle with BASF Corporation (OTCQX: BASFY). This settlement represents another breakthrough in the ongoing AFFF litigation and PFAS contamination issue and its impact on water systems nationwide. Adhering to the provisions of the Safe Drinking Water Act, this settlement underscores a cooperative effort to address and mitigate environmental concerns associated with providing clean drinking water and supporting public health. The settlement is subject to court approval.
"This significant agreement is in large part the result of the pressure of upcoming trial cases focused on Telomer AFFF defendants. It also encapsulates intense negotiations and the common resolve to prioritize environmental integrity and public well-being. It acknowledges the scope of the PFAS crisis, and the financial depths required to address a problem of this magnitude. Like the ones before it, this settlement will serve the interests of the communities affected by providing funds that will be invested into the health and safety of the nation's water supply. Conversations with other defendants continue," stated MDL court-appointed Plaintiffs' Executive Committee co-lead attorneys Michael London of Douglas & London, Paul Napoli of Napoli Shkolnik, Scott Summy of Baron & Budd and Joseph Rice of Motley Rice.
Outlined in the preliminary agreement, BASF Corporation will place $312.5 million into an escrow account, set to be disbursed for the benefit of the class members in accordance with the agreed-upon payment schedule by March 1, 2025, pending final court approval. An additional $4 million will be paid and set aside for administrative costs of the settlement. The expedited payment scheme underscores both parties' intent to deliver timely relief to affected water systems and communities.
Funds from the settlement are allocated for the financial demands public water systems face in their effort to comply with regulations and public safety standards regarding PFAS levels in water. The settlement funds aim to alleviate the burdens of monitoring, treatment, and remediation to ensure compliance with the Safe Drinking Water Act. Notably, this allocation will contribute to enhancing the quality and safety of drinking water, reflecting a significant investment in public health.
While BASF Corporation remains firm in its denial of wrongdoing or liability, the agreement to fund such a substantial settlement illustrates a strategic decision to resolve complex environmental challenges. BASF is the successor-in-interest to Ciba Corp., who manufactured, designed, sold, supplied, and distributed the fluorochemical surfactant Lodyne. This significant commitment to finance these efforts is essential in aiding public water systems and enhancing community health across the nation.
About MDL No. 2873 In Re: Aqueous Film-Forming Foam (AFFF) Products Liability Litigation
Established in 2018, this MDL is currently comprised of over 7,000 cases pending before the Honorable Richard M. Gergel in the U.S. District Court, District of South Carolina, for coordinated discovery and pretrial matters. Cases involve varied causes of action and claims relating to per- or polyfluoroalkyl substances (PFAS). Plaintiffs generally allege that aqueous film-forming foams (AFFFs) containing perfluorooctanoic acid (PFOA) and/or perfluorooctane sulfonate (PFOS), two types of PFAS, contaminated groundwater near various military bases, airports, and other industrial sites where AFFFs were used to extinguish liquid fuel fires. The plaintiffs also allege that they were caused personal injury, a need for medical monitoring, property damage or other economic losses. There are other remaining defendants in the litigation. To date there have been three other settlements. The $1.185 billion DuPont, Chemours, and Corteva settlement and the up to $12.5 billion3M Company settlement have been approved by the court. The $750 million agreement in principle with Tyco awaits court approval. The next hearing is scheduled for July 19, 2024. For more details visit aff-mdl.com.
Media Contact:
Communications@motleyrice.com
View original content:https://www.prnewswire.com/news-releases/afff-mdl-plantiffs-executive-committee-leadership-strikes-316-5m-deal-with-basf-for-safer-water-302151515.html
SOURCE PLANTIFFS’ EXECUTIVE COMMITTEE LEADERSHIP
