AFFF MDL PLANTIFFS' EXECUTIVE COMMITTEE LEADERSHIP STRIKES $316.5M DEAL WITH BASF FOR SAFER WATER

Rhea-AI Summary

The MDL Plaintiffs' Executive Committee has announced a $316.5 million settlement with BASF to address PFAS contamination in water systems, pending court approval. This agreement aims to mitigate water contamination through significant financial support, with $312.5 million allocated to an escrow account and $4 million for administrative costs. The first payment distribution is scheduled for March 2025. This settlement, part of ongoing AFFF litigation, reinforces efforts to comply with the Safe Drinking Water Act and enhance public health by improving drinking water quality. BASF, while denying wrongdoing, has committed to this substantial financial allocation.

Positive

• BASF commits $316.5 million to address PFAS contamination.
• The settlement includes $312.5 million for affected communities and $4 million for administrative costs.
• First payment distribution scheduled for March 2025, ensuring timely relief.
• Funds will help water systems comply with the Safe Drinking Water Act.
• Settlement supports public health by improving drinking water quality.
• BASF's financial commitment underscores its role in resolving environmental challenges.

Negative

• Settlement subject to final court approval, creating uncertainty.
• BASF's denial of wrongdoing might raise questions about accountability.
• The $316.5 million may not fully cover long-term PFAS remediation costs.
• Administrative costs of $4 million reduce the total amount available for direct remediation.

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 billion 3M 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

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SOURCE PLANTIFFS’ EXECUTIVE COMMITTEE LEADERSHIP

FAQ

What is the settlement amount BASF agreed to for PFAS contamination?

BASF agreed to a $316.5 million settlement for PFAS contamination.

When is the first payment distribution for the BASF PFAS settlement?

The first payment distribution is scheduled for March 2025.

What are the environmental benefits of the BASF PFAS settlement?

The settlement aims to improve drinking water quality and public health by mitigating PFAS contamination.

Is the BASF settlement for PFAS contamination final?

The settlement is pending final court approval.

How will the BASF settlement funds be used?

The funds will be used for monitoring, treatment, and remediation to comply with the Safe Drinking Water Act.

What are the administrative costs in the BASF PFAS settlement?

The settlement includes $4 million allocated for administrative costs.