[HN Gopher] Three companies agree to pay $1B to settle 'forever ...
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       Three companies agree to pay $1B to settle 'forever chemical'
       claims
        
       Author : gmays
       Score  : 119 points
       Date   : 2023-06-05 14:45 UTC (8 hours ago)
        
 (HTM) web link (www.cnn.com)
 (TXT) w3m dump (www.cnn.com)
        
       | rieg3c wrote:
       | i'm reading these are used everywhere, pretty much like plastics
       | :(
       | 
       | i really think this problem is out of our hands, i wonder how
       | much time we have until the food and water has so much plastic
       | and forever chemicals that it isn't safe to eat anymore
        
       | Eddy_Viscosity2 wrote:
       | Seems kinda low given the scope and bets that amount a) gets
       | substantially reduced later on and b) will be claimed as business
       | expense so will have a even lesser net effect. Its just minor
       | inconvenience for them.
        
       | notRobot wrote:
       | $1B combined, not individually
       | 
       | > _The three companies said they have agreed to contribute a
       | total of $1.185 billion to a settlement fund. Chemours will
       | contribute 50 percent (about $592 million), and DuPont and
       | Corteva will together contribute the remaining 50 percent, at
       | about $400 million and $193 million, respectively._
        
       | EscapeFromNY wrote:
       | https://www.dupont.com/news/dupont-reports-fourth-quarter-an...
       | 
       | Look at these numbers, extrapolate them to the decades they've
       | been in business, and then compare them to DuPont's payment here
       | of $400 million. The numbers aren't even close.
        
       | Invictus0 wrote:
       | Just the cost of doing business. They paid pennies on the dollar
       | for the damage they inflicted and they will do it again next time
       | it suits them.
        
       | [deleted]
        
       | ProAm wrote:
       | This is not enough of a penalty.
        
       | cgb223 wrote:
       | I mean it's great they're paying a fine, but are they going to
       | you know, develop anything that will pull these forever chemicals
       | out of the water?
        
         | [deleted]
        
         | intelVISA wrote:
         | Don't be silly, have you even thought of the stakeholders?
        
       | stodor89 wrote:
       | Another day, another slap on the wrist.
        
         | [deleted]
        
       | Zetice wrote:
       | When a payout like this occurs, does it mean the problem is
       | resolved? In other words, are these companies no longer putting
       | out toxic chemicals, or are they buying the ability to continue
       | to do that without fear of further lawsuits?
        
         | [deleted]
        
         | pluc wrote:
         | > In a statement, Dupont said it "has never manufactured PFOA
         | or PFOS." CNN has reached out to the other companies for
         | comment on the allegations, which they denied in a press
         | release Friday.
         | 
         | How can they stop something they never did
        
           | rebolek wrote:
           | you forgot /s
        
           | ceejayoz wrote:
           | I don't understand that statement. It seems to be an outright
           | lie, or quoted out of context; not sure which, and both are
           | plausible.
           | 
           | https://www.dupont.com/position-statements/pfoa.html says
           | "While we no longer make PFOA..."
        
             | paxys wrote:
             | The settlement likely includes a provision for them not
             | having to admit to any wrongdoing, so they can legally lie
             | in their press release.
        
             | tedunangst wrote:
             | DuPont has a complicated corporate history. Chemours, one
             | of the other companies in the settlement, is the division
             | that made Teflon. Corteva was also part of DuPont (and
             | Dow). It may be technically true that none of the business
             | units currently in DuPont made anything bad.
        
             | HWR_14 wrote:
             | Three possibilities (other than just inconsistent
             | statements).
             | 
             | The "we no longer" could be referring to "the US" as "we",
             | since they talk about the FDA outlawing it. So DuPont never
             | made PFOA.
             | 
             | "Manufacture" might be used in the chemical industry only
             | refer to creating products. And DuPont was earlier in the
             | supply chain.
             | 
             | Or, even more upstream, DuPont may have made precursor
             | chemicals that other people mixed into the final PFOA.
        
           | sebzim4500 wrote:
           | I am aware that companies sometimes settle cases where they
           | are in the right in order to avoid legal fees, but the idea
           | that Dupont paid $400M in this settlement despite having not
           | manufactured the chemicals in question is absurd.
           | 
           | If they thought they weren't liable then they would have
           | fought this in court.
        
           | moi2388 wrote:
           | DuPont is lying. They 100% did produce these materials. We
           | have a factory on my place from which they dump this in the
           | river.
        
             | moneywoes wrote:
             | Maybi ask what type of factory, are there no regulations?
        
           | EscapeFromNY wrote:
           | I can think of plenty of ways that sentence might be
           | weaselly.
           | 
           | Maybe they "synthesized" them, not "manufactured"
           | 
           | Maybe they bought them from some other company (which they
           | might happen to own)
           | 
           | Maybe they manufactured PFAs in general, but not the specific
           | chemicals PFOA or PFOS (it's an awfully specific statement,
           | after all)
        
             | plagiarist wrote:
             | Yeah I immediately just assumed they manufactured them
             | "through" a "subsidiary." Like how you can manufacture
             | carcinogenic talcum powder and not pay your victims much of
             | anything.
        
             | horsawlarway wrote:
             | I think it will likely be this - I'm already seeing all
             | sorts of companies pivot to marketing "PFOA" free teflon
             | alternatives (Starflon was the one that popped up last).
             | 
             | I suspect that just like the whole BPA in plastic thing -
             | the "___ free" alternatives will not be any better.
             | 
             | They will just be sidestepping the very precise legal
             | definition of the chemical that got them in trouble.
        
               | TylerE wrote:
               | Either that or it will be like gluten-free, and you'll
               | start seeing it slathered all over stuff that never had
               | it in the first place. Like, no duh non-flavored
               | sparkling water is gluten free! (Actual example I saw in
               | the grocery store today)
        
               | ceejayoz wrote:
               | Not as silly as it sounds.
               | 
               | If you've got celiac, you may want to avoid sparkling
               | water made in a plant that also bottles wheat beers.
               | Gluten free refers not only to the ingredients, but to
               | the manufacturing facility.
               | 
               | https://celiac.org/main/wp-
               | content/uploads/2017/07/Combined-..., point #6.
               | 
               | > "The gluten-free label represents that the procedures
               | put in place to prevent cross-contact with gluten meet
               | FDA standards."
        
               | lesuorac wrote:
               | Well something like Soy Sauce often has gluten in it and
               | I'd say judging by the name it doesn't.
               | 
               | So something that seems like it'd trivially not contain X
               | may actually have X.
        
           | laputan_machine wrote:
           | Then there would be no evidence, which would mean the court
           | case would be thrown out / one-sided. Instead they settled
           | for a large amount of money. Does that not make you raise
           | your eyebrows?
        
         | [deleted]
        
         | rqtwteye wrote:
         | The problem has been "resolved" in the sense that the companies
         | and government don't have to deal with it anymore. That's the
         | goal.
        
           | agilob wrote:
           | I'll pay you $1B to shut up
        
             | rad_gruchalski wrote:
             | I take it. Should I send you my bank details?
        
             | wiz21c wrote:
             | For that price I can even clean the dishes if you will,
             | say, for a year or two.
        
       | JoeAltmaier wrote:
       | Isn't $1B a trivial amount for environmental damage?
        
         | JohnFen wrote:
         | Yes, it's meaningless.
         | 
         | Once again, these huge corporations are destroying the world
         | for profit and getting away with it.
        
         | Sunspark wrote:
         | Yes. It's an absolute steal of a price to pay for something
         | that persists in the environment. It seems like a big number to
         | people who live off a paycheck but if you compare it to a
         | project like a section of highway construction or an airport or
         | whatever you quickly see that this is no penalty. Put another
         | way, an NBA basketball franchise is worth 2.86 billion on
         | average. The penalty is basically 1/3rd of a pro level
         | basketball franchise.
        
         | HWR_14 wrote:
         | This is only to cover damage to the drinking water (and
         | excludes any drinking water supplied by state or federal
         | governments). More lawsuits or settlements can concern
         | themselves with damage to the environment.
         | 
         | As for if that is a trivial amount for what they are paying
         | for, I don't know.
        
       | 29athrowaway wrote:
       | They made more than $1B and caused more than $1B in damages. This
       | is a slap on the wrist.
        
       | CommanderData wrote:
       | Pocket change.
       | 
       | This is not accountability for infecting the worlds population
       | with these nasty chemicals.
        
         | mensetmanusman wrote:
         | PFAS technology was top secret WW2 research output. Then the
         | military discovered that they had amazing properties to fight
         | extremely dangerous fires in missile warehouses and were
         | eventually required to use them to maximize safety decades ago.
         | 
         | Prozac, Lipitor, Flonase and about 30% of upcoming new
         | pharmaceutical drugs are PFAS, so they aren't going away
         | completely, because society has determined that they are
         | valuable even if they can reach toxic levels if not disposed of
         | properly (every chemical is toxic after a certain human
         | concentration, including water).
         | 
         | Companies wouldn't be able to manufacture semiconductors
         | without PFAS as well, or high temperature components for
         | warfare.
         | 
         | Now that we are smarter, we know how to mitigate risk and
         | reduce concentrating materials to keep below relevant ppb
         | thresholds.
         | 
         | If America isn't educationally sophisticated enough to handle
         | this manufacturing and risk, it will just be done in zero
         | regulation geographies like China and the world will be worse
         | off.
        
           | bluedays wrote:
           | PFAS is not used in pharmaceutical drugs.
        
             | nate_meurer wrote:
             | They absolutely are. My favorite antidepressant fluoxetine
             | (Prozac) is unambiguously a PFAS.
        
             | ok_computer wrote:
             | They listed prozac that is fluorinated
             | 
             | https://en.m.wikipedia.org/wiki/Fluoxetine
             | 
             | But I'm unsure the line where perfluoralkylated is reached.
             | I'd think if the compound had alkylated chains instead of a
             | fluorine-linked head group.
        
           | JohnFen wrote:
           | > because society has determined that they are valuable even
           | if they can reach toxic levels if not disposed of properly
           | 
           | Society never decided this one way or another. Rich and
           | powerful corporations did.
        
           | saiya-jin wrote:
           | What about we first find out how much of it is actually toxic
           | (which seems rather 1/1000th of current official numbers) and
           | _then_ start using them in processes which actually respects
           | that? It still doesn 't cover _accumulation_ in bodies over
           | time though.
           | 
           | You don't gain any longterm competitive advantage by
           | poisoning half of your population, giving them wonderful
           | cancers, infertility, massive amount of birth defects etc.
           | You just destroy society and bankrupt medical insurance.
           | 
           | This isn't some economics and plying with abstract numbers,
           | these are people out there and messing this up badly will
           | have massive negative impacts for many generations.
        
       | sledgehammers wrote:
       | The leadership should go to jail. The fine should be 100x.
        
       | Agingcoder wrote:
       | If they agree then it's not expensive enough.
        
       | PaulKeeble wrote:
       | The cost for anything like this should always be the cost of
       | cleaning up the entire mess it created and compensating the
       | humans harmed by it and covering their lifetime medical bills.
       | $1billion sounds a tad low for doing any of that given the world
       | wide impact. Its a bad deal.
        
         | wmeredith wrote:
         | Justice served would be jail time for execs or a corporate
         | death penalty. Levying a fine means it's just a cost of doing
         | business. And a billion dollars sounds like a lot, but it's a
         | drop in the bucket for these massive multinational corporations
         | that have been in business for decades.
        
           | politician wrote:
           | > a corporate death penalty
           | 
           | So, no more Kevlar for police protection? The problem with
           | the idea of a corporate death penalty is that it would
           | shutter the corporation, shock the supply chain for critical
           | materials, terminate the employment of thousands of people,
           | and devastate their communities (e.g. because employees have
           | families and those families consume food and stuff from the
           | local economy which, in turn, supports other families).
           | 
           | It's obvious why we haven't adopted it as a viable
           | punishment.
        
             | phkahler wrote:
             | Nah, the assets would be auctioned off. The shareholders
             | would be screwed. But the employees would largely stick
             | around and do stuff under new ownership. It would still be
             | a shock, but after a few of these you'd see investors not
             | willing to allow that kind of thing to happen because it's
             | a huge financial risk to them. Not a great solution, but
             | also not as ruinous as you might think. Companies shouldn't
             | be "too big to fail" and most aren't.
        
             | saiya-jin wrote:
             | There are tons of Kevlar alternatives, on cca same level of
             | performance these days. Just because some company made a
             | good product once or twice will make them invincible
             | against the law with all the rest they ever did?
             | 
             | You forgot 'think about the children' part, but in this
             | case, it actually goes against that fucked up corporations.
             | We may have to see half of our kids infertile in a decade
             | or two and shitload of birth defects that can bankrupt any
             | health services (in case of US rather half of population),
             | no amount of thinking about Kevlar or Goretex (for which
             | there are tons of great alternatives too and I stopped
             | using their stuff in mountains long time ago) is going to
             | fix that
        
             | JohnFen wrote:
             | > It's obvious why we haven't adopted it as a viable
             | punishment.
             | 
             | But we did. It used to be a tool that was implemented when
             | a corporation behaved egregiously badly. At some point,
             | though, we stopped (I think it was in the 40s, but I'm not
             | sure).
             | 
             | We really, really need to bring it back. There is no other
             | way to hold them in check.
        
             | HWR_14 wrote:
             | Chapter 11 bankruptcies allow corporations to continue
             | operating. They just hose the investors.
        
               | politician wrote:
               | The shareholders aren't the ones manufacturing the PFAS.
               | I think that I want the operating unit to be halted and
               | dismantled. Not the shareholders, management, or other
               | units. So, I don't think Chapter 11 is the right
               | solution.
        
               | alistairSH wrote:
               | I think Chapter 11 was just meant as an example of a
               | "closed" company continuing to operate. No reason we
               | can't dismantle Dupont in a similar fashion.
        
               | briantakita wrote:
               | Will it solve the problem though? Assets & IP would be
               | auctioned off. Shell companies would be formed to handle
               | liability. The problem lies with the people who made the
               | decisions that led to the toxic materials being
               | discharged into the environment & the people harmed.
               | 
               | A Chapter 11 would allow the same staff who caused the
               | problems to join the new companies. Unless the people who
               | caused the problems are personally & criminally held
               | liable, nothing would change.
        
               | JohnFen wrote:
               | > The shareholders aren't the ones manufacturing the
               | PFAS.
               | 
               | True. They're just bankrolling it. I think it's totally
               | fair to hold them responsible as well. Perhaps it would
               | make investors pay more attention to what they're really
               | supporting with their investment money.
        
               | [deleted]
        
           | briantakita wrote:
           | Perhaps the death penalty for the execs would cause some real
           | reform. Japanese culture had the concept to Seppuku when
           | someone brought shame to their position. They seem to take
           | their jobs seriously.
        
         | BizarroLand wrote:
         | Yeah, it's a "make the victims feel like they got some justice"
         | money but not anywhere near enough to actually solve the
         | problem or to repay the damages.
         | 
         | They're basically getting off scott free, and they made tens of
         | billions of dollars in profit for only having to pay 1 billion
         | in damages.
        
         | hospitalJail wrote:
         | Back when I was 19 and an anarchist, I was always critical of
         | LLC laws. I probably still am.
         | 
         | I believe the judicial system does do the fine as you
         | mentioned, but the prosecutors have to be realistic and settle
         | out of court at the risk a skeptical judge/jury.
         | 
         | Without LLC laws, you could go after personal ownership too.
         | Privately owned company means there is a few billionaires to
         | have their wealth confiscated. Publicly, our 401ks empty + risk
         | of losing our homes.
         | 
         | Isn't that insane to think about? What would a world look like
         | if that was the case. Would companies be incredibly
         | responsible? Would investors be incredibly responsible?
         | 
         | I don't claim to say this is the best economic system, but it
         | might solve our climate crisis by forcing people to be liable
         | for themselves and what they own.
        
           | lesuorac wrote:
           | I'm not sure that the LLC laws are exactly the problem.
           | 
           | I think it's the fact that you can get a company incorporated
           | to do pretty much a vague _anything_ is the problem. There
           | should be an ounce of thought by the State as to if what the
           | person wants a company for is actually useful for society
           | before granting them immunity.
           | 
           | The second major issue is that the State is never willing to
           | dissolve a company once it reaches some size no matter how
           | much wrong doing it does. Like Walls Fargo willfully creating
           | fake accounts to charge consumers money should've just be an
           | instant disqualification for a banking license.
        
             | bdowling wrote:
             | First, a corporation can't do anything that an individual
             | can't do.
             | 
             | Second, incorporation does not protect the business, it
             | protects investors. Without it, investors would be general
             | partners and would be personally liable for anything the
             | business does, including all debts and torts, even if they
             | had no active role in running the business.
             | 
             | Third, where owners of a corporation or LLC do participate
             | in running a business, they often can be held personally
             | liable for the debts and torts of the business. This is
             | called "piercing the corporate veil" and happens all the
             | time in lawsuits against small businesses.
        
               | JohnFen wrote:
               | > investors would be general partners and would be
               | personally liable for anything the business does,
               | including all debts and torts, even if they had no active
               | role in running the business.
               | 
               | I think it would be a better world if investors _were_
               | held responsible for the wrongdoings of the businesses
               | they finance.
        
               | lesuorac wrote:
               | > First, a corporation can't do anything that an
               | individual can't do.
               | 
               | The problem is not that a corporation can do something
               | that an individual can't. It's that you can't punish a
               | corporation the same way you can an individual.
               | Corporations cannot sit in a jail cell.
               | 
               | > Second, incorporation does not protect the business
               | 
               | Your Third point kinda disproves this. You have to
               | "pierce the corporate veil" in order to hold individuals
               | of the LLC liable and this is generally w.r.t. an LLC
               | commingling its funds with the owners funds. Not to do
               | with an Owner doing an undesirable/illegal act (say
               | fraud).
               | 
               | > Third, ... happens all the time in lawsuits against
               | small businesses.
               | 
               | I'm not really sure any of these points counter-act
               | anything I wrote. I explicitly called out Wells Fargo and
               | you responded that small business routinely get attacked.
               | Wells Fargo is not a small business.
        
           | Ekaros wrote:
           | I wonder if we could have fractional death penalty. Some
           | lifetime counter on your responsibility of deaths by
           | companies you own. When certain threshold let's say 0.5 is
           | reached, it will be carried out when ever you are
           | apprehended.
        
           | mindslight wrote:
           | Individuals and small businesses generally don't get great
           | protection from LLC/incorporation and they get along just
           | fine (when the owners are directly involved in running the
           | business, it becomes much easier to pierce the veil).
           | 
           | IMO, what really needs to be reigned in is this blanket
           | extension of natural/individual rights to synthetic entities
           | that receive limited liability protection. That government-
           | granted charter with limited liability means that they're not
           | _merely_ groups of people exercising individual rights
           | collectively, as the supreme council has decreed.
        
         | stcroixx wrote:
         | They are not absolved of their remediation responsibilities,
         | which are separate from these claims.
        
         | rqtwteye wrote:
         | Agreed. Most of the money probably doesn't even go to the
         | people who got damaged.
        
         | [deleted]
        
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       (page generated 2023-06-05 23:03 UTC)