US states challenge Corteva spinoff as bid to evade PFAS liabilities

US states have filed lawsuits contesting Corteva Agriscience’s planned spin‑off of its unit Vylor, arguing the move is designed to shield the companies from billions of dollars in PFAS contamination costs. State attorneys general allege that the restructuring would divert assets away from responsibility for legacy pollution. The actions put state treasuries at risk of bearing the financial burden of cleaning up contaminated sites.

Reuters and Agri‑Archynetys describe coordinated legal efforts across multiple states, and the Indianapolis Business Journal says Indiana is seeking a court order to freeze the asset transfer. The filings allege that the corporate split would leave the liability pool under‑funded. The lawsuits remain pending and no court ruling has yet determined whether the spin‑off will be blocked or if the alleged liability shield will be dismantled.

State officials say the litigation could set precedent for future corporate restructurings involving hazardous waste. The outcome will shape how environmental costs are allocated among corporate entities and state claimants.