Carrier Global agrees to $730 million settlement in battle against 'forever chemicals'

Carrier Global has reached a significant $730 million settlement with its fire protection technology subsidiary, Kidde-Fenwal, and plaintiffs who sued the insolvent company over toxic 'forever chemicals' in its firefighting foam products. In a court document from Delaware, Kidde-Fenwal stated that the settlement payment is to be used to create a Chapter 11 bankruptcy plan. This plan aims to compensate creditors, including local governments, businesses, and individuals, who claimed that the sale of these products contaminated drinking water and soil near airports and military bases in the U.S. with per- and polyfluoroalkyl substances (PFAS). This settlement has the support of a committee representing Kidde-Fenwal's subordinate creditors and the leading plaintiffs in the PFAS lawsuits. Carrier stated in a filing to the U.S. Securities and Exchange Commission that the settlements will be funded with $615 million in cash over five years. An additional $115 million will come from the sale of Kidde-Fenwal's assets to private equity firm Pacific Avenue Capital Partners, which was approved in April. Moreover, Carrier is entitled to receive up to $2.4 billion in insurance proceeds for the PFAS claims, intended to cover the costs of the settlement payments. Carrier also agreed to transfer additional insurance claims to Kidde-Fenwal, potentially providing extra funds for water contamination remedies. Kidde-Fenwal filed for bankruptcy in May 2023 after the company was named in over 4,400 PFAS lawsuits. These lawsuits were filed by local governments, businesses, and individuals who claimed that chemical firefighting foams sold between 2007 and 2013 caused extensive contamination. In a broader context, water providers in the U.S. reached a $10.3 billion settlement with 3M as well as a $1.19 billion settlement with DuPont, Chemours, and Corteva.