Carrier reaches $730 mln settlement over fire protection unit PFAS claims
By Dietrich Knauth
Oct 21 (Reuters) -Carrier Global has reached a $730 million settlement with its fire protection unit Kidde-Fenwal and claimants that have sued the bankrupt subsidiary over toxic "forever chemicals" in its firefighting foam products.
Kidde-Fenwal said in a Friday court filing in Delaware that it would use the settlement to create a Chapter 11 plan that would pay its creditors, including local governments, companies and individuals who have claimed that firefighting foam products it sold contaminated drinking water and soil with perfluoroalkyl and polyfluoroalkyl substances, known as PFAS or "forever chemicals," near airports and military bases around the U.S.
The settlement has the support of a committee representing Kidde-Fenwal's junior creditors and the lead plaintiffs in the PFAS lawsuits.
The company has agreed to pay $540 million to Kidde-Fenwal and $190 million to the PFAS plaintiffs.
Carrier said in a Friday filing with the U.S. Securities and Exchange Commission that it will fund the settlements with $615 million in cash paid over five years, plus $115 million that was raised from the sale of Kidde-Fenwal's assets to private equity firm Pacific Avenue Capital Partners, which was approved in April.
Carrier said it is entitled to up to $2.4 billion in insurance payouts for the PFAS claims, enough to cover its costs for the settlement. Carrier also agreed to contribute additional insurance rights to Kidde-Fenwal, which may make more funding available for the water pollution settlements.
Kidde-Fenwal filed for bankruptcy in May 2023, after being named as a defendant in more than 4,400 PFAS lawsuits that have been centralized in federal court in South Carolina.
The lawsuits were filed by local governments, companies and individuals who alleged that a chemical firefighting foam products that the company sold from 2007 to 2013 used at airports and military bases had caused extensive contamination of drinking water and soil.
Water providers in the U.S. have reached a $10.3 billion settlement with 3M and a $1.19 billion settlement with DuPont, Chemours and Corteva, resolving their claims that those companies contaminated drinking water with PFAS.
The case is Kidde-Fenwal Inc, U.S. Bankruptcy Court for the District of Delaware, No. 23-10638.
For Kidde-Fenwal: Brian Glueckstein and Justin DeCamp of Sullivan & Cromwell
For the creditors' committee: David Molton of Brown Rudnick
Read more:
Fire protection company Kidde-Fenwal files for bankruptcy citing PFAS lawsuits
3M's $10.3 billion PFAS settlement gets preliminary approval
Litigation over 'forever chemicals' is growing: Is your company the next defendant?
Reporting by Dietrich Knauth
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