Today, shareholders for DuPont and Dow Chemical voted their shares in favor of the companies’ joint merger proxy, representing a significant step towards the completion of the merger and raising significant questions about how DuPont’s unaccounted and unaccrued liabilities will be handled within the merged company. The brief meeting offered no clarity on the substantial and material concerns regarding these liabilities previously described by Keep Your Promises DuPont in a July 13 letter to the DuPont board and later filed in a DuPont 8-K on July 15 (link).
The July 13 letter and subsequent 8-K filing included material concerns regarding unaccounted and unaccrued liabilities including new C-8 litigation classes, remediation costs associated with over 190 contamination sites nationwide, emerging C-8 investigations in Europe, growing liabilities arising from the existing C-8 class, and Chemours’ threatened legal challenge of its indemnification agreement with DuPont. For a full accounting and citations for these claims, please see the July 13 letter (link).
Harold Bock, advisor to Keep Your Promises DuPont, issued the following statement regarding today’s vote:
“Stakeholders want to know how the liabilities will be dealt with once the merger is completed, but beyond that, we need answers about what happens after the company splits into three smaller companies. We have a right to see the separation agreement, and we have a right to see how DuPont, DowDuPont, and any of the final three companies will handle these enormous liabilities. These details are crucial for shareholders, but they are a matter of life and death for thousands of folks in the mid-Ohio Valley.
“It is ridiculous that we do not have the basic answers we need as to how our friends and neighbors will be taken care of. It appears that this merger is being carried out with no regard for the human toll it will take on communities in the mid-Ohio Valley and nationwide.”