A group of 15 U.S. states and Guam filed a lawsuit against Corteva on October 1, alleging its seed-business spinoff is a fraudulent attempt to evade billions of dollars in liabilities tied to “forever chemicals,” or PFAS. Filed in Indiana, the suit claims the transaction unlawfully transfers Corteva’s most valuable assets to a new entity, Vylor Inc., while leaving the original company with substantial PFAS-related debts.
The lawsuit coincided with the completion of the spinoff, which separated Corteva’s crop protection business from its seed and genetics operations. The states argue the move is designed to put the profitable seed business beyond the reach of creditors and those pursuing environmental pollution claims related to legacy DuPont operations. Corteva inherited the PFAS liabilities from the 2015 Dow-DuPont merger.
Corteva denies the allegations, calling the separation a legitimate business transaction and saying it can cover any potential liabilities.