California is suing Du Pont de Nemours, alleging the company fraudulently transferred assets to avoid paying for harm caused by "forever chemicals" like PFAS. The lawsuit, filed by Attorney-General Rob Bonta, claims Du Pont engaged in a scheme to evade accountability for liabilities related to these substances, which are linked to health issues.

The suit targets Du Pont and its spun-off electronics business, Qnity, seeking to prevent the transfer of proceeds from assets that were part of Du Pont before its 2017 merger with The Dow Chemical Company. Bonta described the litigation as "first-of-its-kind," alleging "wrongful conduct" designed to hinder creditors.

This action follows previous legal battles over companies using restructuring schemes to shield assets. California had previously sued Du Pont, 3M, and others in 2022 over PFAS contamination. The current complaint specifically alleges Du Pont transferred insurance rights from its spin-off Chemours to Du Pont and Corteva for significantly less than their estimated value, a move California deems a fraudulent transfer intended to defraud creditors.