Carrier Global has agreed to a $730 million settlement to resolve lawsuits against its bankrupt fire protection subsidiary, Kidde-Fenwal.
As reported by Reuters, the lawsuits were filed by local governments, companies, and individuals claiming that firefighting foam products sold by Kidde-Fenwal contaminated drinking water and soil with PFAS, commonly known as “forever chemicals.”
These products were used near airports and military bases across the U.S.
The settlement will help create a Chapter 11 bankruptcy plan for Kidde-Fenwal to pay its creditors.
This plan is supported by the junior creditors’ committee and the lead plaintiffs in the PFAS litigation.
The settlement includes $540 million allocated to Kidde-Fenwal and $190 million to the plaintiffs in the PFAS claims.
Carrier has committed to funding the settlement with $615 million in cash payments spread over five years, along with $115 million raised from the sale of Kidde-Fenwal’s assets to Pacific Avenue Capital Partners. The asset sale was approved in April.
According to a filing with the U.S. Securities and Exchange Commission, Carrier expects to recover up to $2.4 billion in insurance payouts for PFAS claims, which could cover the full settlement cost.
Carrier has also agreed to contribute additional insurance rights to Kidde-Fenwal, potentially increasing the funds available for water pollution settlements.
Kidde-Fenwal filed for bankruptcy in May 2023 after being named as a defendant in over 4,400 PFAS lawsuits centralized in South Carolina federal court.
The lawsuits stem from allegations that firefighting foam products sold by the company between 2007 and 2013 caused contamination of drinking water and soil with PFAS near U.S. airports and military bases.
The plaintiffs in these lawsuits include local governments, companies, and individuals who have suffered environmental damage due to the widespread use of PFAS-containing firefighting foams.
In addition to the Kidde-Fenwal settlement, other major companies involved in PFAS litigation have also reached settlements.
Water providers in the U.S. settled for $10.3 billion with 3M and for $1.19 billion with DuPont, Chemours, and Corteva.
These settlements addressed claims that the companies had contaminated drinking water with PFAS.
The lawsuits highlight growing concerns over the environmental and health impacts of PFAS, leading to large-scale litigation and significant financial settlements for those affected by the contamination.
Carrier Global has reached a $730 million settlement involving its bankrupt subsidiary Kidde-Fenwal and plaintiffs who sued over PFAS contamination caused by firefighting foam products.
The settlement, supported by both the company’s creditors and plaintiffs, will create a Chapter 11 plan to address claims that the company’s products polluted water and soil near U.S. airports and military bases.
Carrier will fund the settlement with $615 million in cash and $115 million from the sale of Kidde-Fenwal’s assets.
The company also anticipates receiving up to $2.4 billion in insurance payouts related to PFAS claims.
