The Delaware Chancery Court has granted a motion to dismiss a lawsuit filed by Chemours against DuPont.
DuPont spokesman Dan Turner said “We are pleased with the Court’s ruling, which dismissed Chemours’ lawsuit in full, based on what the Court called a “straightforward application of settled law.” Chemours argued that the Separation Agreement governing the Chemours spin-off was unenforceable because Chemours was an EID subsidiary at the time it signed the agreement.
The Court rejected that argument, confirming that contracts between parents and subsidiaries (like our Separation Agreement with Chemours) are “routinely enforced,” and that to invalidate such a contract on the procedural ground offered by Chemours “would be nonsensical.”
Chemours’ indemnification obligations are clear. We will take appropriate steps to enforce our rights under the Separation Agreement, added Turner
Chemours lawsuit claimed that DuPont failed to disclose risks facing those companies that were spun off to Chemours.