New research suggests Cape Fear pollutants are more toxic than originally thought and may be airborne

WILMINGTON, N.C. –DuPont (NYSE: DD) and its former wholly-owned subsidiary, the Chemours Company (NYSE: CC), disregarded internal test results before illegally dumping hazardous chemicals into North Carolina’s Cape Fear River and then mislead the  government regulators about its conduct, according to a Consolidated Complaint filed late Wednesday in a closely-watched class-action lawsuit against the chemical giant. The new allegations come just days after independent researchers suggested that GenX, the chemical dumped into the water for decades, is even more toxic than previously known and may also be airborne. Residents, many suffering from cancer and other life-threatening illnesses, are now demanding further independent testing in the wake of these new findings.

The Complaint highlights the discovery of new Fayetteville-region groundwater wells showing significant traces of GenX. As at least one of these wells is situated uphill from the Fayetteville Works industrial facility, the plaintiffs want to determine whether the chemical can be dispersed through the air, as new research suggests is possible.

“It seems that every day we learn more about the danger these substances pose and the extent of Dupont’s and Chemours’ callous disregard for the lives of thousands of North Carolinians,” said Theodore J. Leopold, co-chair of the Consumer Protection Practice and Chair of the Catastrophic Injury & Defective Products Practice at Cohen Milstein Sellers & Toll and lead plaintiffs’ attorney in the case. “The scope of the pollution and horrible effects of these chemicals are much more significant than originally thought. We look forward to getting justice for the families who have been harmed by these companies’ irresponsible acts.”

Officials from Chemours seemed to indicate the severity of the GenX pollution last month, announcing their intentions to provide filters to people in the Fayetteville region who get their water from ground wells. Last Thursday, the Environmental Protection Agency announced that it has asked Chemours to test the drinking water by its production facility in West Virginia for GenX, citing GenX contamination near the Fayetteville plant.

“For decades, DuPont and Chemours have failed their basic duty to safely control and dispose of the toxic chemicals used in the Fayetteville Works plant,” said Steve Morrissey, Partner at Susman Godfrey and Interim Co-Lead Counsel for the plaintiffs. “Through this lawsuit, we will make these companies take responsibility for what they have put in the local air and water, for ensuring that the air and water are safe going forward, and for addressing the serious harms their actions have caused.”

The Consolidated Complaint details extensive health problems of many Cape Fear residents who have now joined the case, including diagnoses of colon and stomach cancer, as well as ulcers and cysts on an individual’s liver and intestines, which led to surgeries, hospitalizations and lost income.

Citing a new study by independent researchers at Stockholm University, which suggests that GenX is even more toxic than PFOA, the amended lawsuit filed today alleges that DuPont overlooked the results of its own testing on GenX and illegally discharged the chemical into North Carolina’s Cape Fear River from its Fayetteville Works plant.

On December 15, 2017, plaintiffs’ counsel filed a motion for expedited discovery to take on-site wastewater samples to further determine the extent of GenX water contamination and potential ill health effects in the Fayetteville, N.C. area. Earlier that month, a sampling by North Carolina’s Department of Environmental Quality showed GenX levels in the water by the Fayetteville Works plant had spiked to levels more than 16 times higher than the state’s standards.

DuPont introduced GenX in 2009 as a supposedly safer alternative to PFOA, a chemical it had used for decades to manufacture Teflon and other products in places like North Carolina and West Virginia. The chemical raised health concerns after it seeped into drinking water sources and locals developed cancers, hormonal dysfunction and autoimmune diseases.

Case Background

Since 1980, DuPont and Chemours have been dumping toxic waste from its 2,000-acre Fayetteville Works plant, including GenX and Nafion byproducts, into the Cape Fear River which supplies drinking water to five North Carolina counties with a combined population of over 770,000. According to the U.S. Centers for Disease Control and Prevention, the affected counties — New Hanover, Bladen, Brunswick, Cumberland and Pender — have among the highest concentration of liver disease in the United States. The North Carolina Department of Health and Human Services says the rates of liver, pancreatic, testicular and kidney cancers are higher in certain of the five counties than the state averages, and DuPont’s own testing has shown that these chemicals can cause liver, pancreatic, testicular and kidney cancer, liver disease, fetal and birth defects.

Despite conducting multiple internal tests that confirmed the toxicity of GenX, DuPont dismissed its own findings, continued the dumping and never disclosed the existence of the toxic waste or the related test results to residents or local utility companies. The class action lawsuit asserts that DuPont lied to government regulators, claiming it was disposing of GenX safely when in fact it was not. As detailed in the lawsuit, the company even represented to the U.S. Environmental Protection Agency and state regulators that GenX was sent to an off-site incinerator, a claim later proven to be false.

Chemours admitted publicly to discharging GenX into the North Carolina public water supply in June 2017, after a team of researchers from the North Carolina State University detected the chemical downriver from the Fayetteville Works plant. In September 2017, the North Carolina Division of Water Resources sought to suspend Chemours’ National Pollutant Discharge Elimination System (NPDES) permit, citing the company’s years-long misrepresentation and failure to disclose the dumping of GenX and Nafion byproducts.

The toxic dumping has not only polluted more than 100 miles of the river but also caused extensive damage to thousands of miles of municipal and residential piping. Chemicals like GenX and Nafion are nearly impossible to eradicate from the water supply once contamination has occurred. They are known to bond with pipes, microbes, plants, animals and sediments and water authorities are not able to filter out the chemicals. To mitigate risks, extensive water filtration is needed at the municipal and residential levels, with removal and replacement of plumbing and appliances inside the home considered the safest and most effective option, potentially costing thousands of dollars for each home.

The class action lawsuit seeks monetary damages and injunctive relief for physical injury, property damage and reduced property values, and the cost of filtering contaminated water and air sustained by residents in New Hanover, Bladen, Brunswick, Cumberland and Pender counties who have been or are currently exposed to the contaminants.

The plaintiffs are represented by partners Theodore J. Leopold and S. Douglas Bunch of Cohen Milstein Sellers & Toll PLLC and Steve Morrissey and Jordan Connors of Susman Godfrey LLP.

About Cohen Milstein

Cohen Milstein Sellers & Toll PLLC is nationally ranked and recognized as one of the premier law firms in the country, handling major, complex plaintiff-side litigation. With more than 90 attorneys, Cohen Milstein has offices in Washington, D.C., Chicago, Ill., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa., and Raleigh, N.C.

About Susman Godfrey

For more than forty years, Susman Godfrey LLP has focused its nationally recognized practice on high-stakes commercial litigation. Susman Godfrey is one of the nation’s leading litigation boutique law firms with offices in Houston, Seattle, Los Angeles and New York.

FOR IMMEDIATE RELEASE:

West Coast bank settles securities class action pending in the U.S. District Court
for the Central District of California.

Washington, D.C.  – Opus Bank (NASDAQ:OPB) will pay $17 million to settle claims that the bank deceived investors about its lending practices. The settlement is subject to notification to investors and court approval.  The suit alleges that Opus Bank underwrote risky loans, disregarded credit controls, and lacked adequate resources to monitor its loan portfolio, and hid this information from shareholders. News of the bank’s alleged misconduct resulted in dramatic declines in the price of Opus Bank’s stock, leading to substantial losses for investors, including the Arkansas Public Employees Retirement System (APERS), lead plaintiff in the class action.

“On behalf of the Arkansas Public Employees Retirement System and other members of the class, we are very pleased with this proposed settlement,” said Steven J. Toll, Co-Chair of Cohen Milstein’s Securities Litigation & Investor Protection practice group and lead counsel in the case. “The proposed settlement represents an excellent recovery for investors who we believe were injured due to their investments in Opus Bank,” added Daniel S. Sommers, Co-Chair of Cohen Milstein’s Securities Litigation & Investor Protection practice group, who also served as lead counsel.

In October 2016, reports began to emerge that Opus Bank’s loan portfolio and lending practices were far more risky than what had previously been disclosed to investors. In the ensuing months, as more information was disclosed, Opus Bank’s stock price dropped precipitously. Investors filed a lawsuit in February 2017 after sustaining heavy losses. APERS’ complaint, filed after its appointment as lead plaintiff, alleged that Defendants failed to disclose that: 1) Opus Bank’s credit culture was aggressive, not conservative; 2) Opus Bank’s underwriting standards were not stringent and the bank underwrote risky loans to entities with little to no cash flow or collateral; 3) Opus Bank’s credit controls were either disregarded or ineffective at identifying problem loans; and 4) Opus Bank did not have appropriate personnel and resources in place to monitor its loan portfolio or to establish proper loss reserves for the loan portfolio.

Opus Bank is a publicly chartered commercial bank, headquartered in Irvine, California with branches located in major metropolitan markets across California, Oregon, Washington and Arizona.

The case is Schwartz v. Opus Bank, No. 2:16-cv-07991-AB-JPR, in the U.S. District Court for the Central District of California.

About Cohen Milstein Sellers & Toll PLLC:

Founded in 1969, Cohen Milstein Sellers & Toll PLLC is recognized as one of the premier law firms in the country handling major, complex plaintiff-side litigation. With more than 90 attorneys, Cohen Milstein has offices in Washington, D.C., Chicago, Ill., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa., and Raleigh, N.C.

FOR IMMEDIATE RELEASE:

New hires bring decades of public and private sector experience and
proven insights for shareholders, institutional investors.

WASHINGTON, D.C. – Cohen Milstein Sellers & Toll PLLC, a leading national plaintiffs’ law firm, announced today that David M. Maser and Christina Donato Saler have joined the firm as Of Counsel in the Securities Litigation & Investor Protection Group. Prior to joining Cohen Milstein, both represented institutional and individual investors at a nationally-recognized plaintiffs’ firm. They bring years of experience and a track record of results for both public and private sector clients.

“Both David and Christina have spent their legal careers developing extensive relationships with public and union pension funds and individual investors for whom they have provided invaluable counsel in matters related to securities fraud and shareholder rights’ violations,” said Steven J. Toll, Managing Partner at Cohen Milstein and Co-Chair of the firm’s Securities Litigation & Investor Protection practice. “We are pleased to welcome them to our firm.  They bring deep experience, unique insights and skill sets.”

“I am excited to bring my passion for building relationships, delivering results and serving as a trusted advisor to Cohen Milstein—which year after year continues to take on some of the toughest cases,” said David M. Maser, who joins the firm as Of Counsel in its Securities Litigation & Investor Protection group. “I am honored by the chance to work with the fine group of lawyers in the Securities Litigation & Investor Protection group and look forward to helping to further grow the practice.”

“Joining Cohen Milstein is an ideal opportunity for me to continue prosecuting cases on behalf of investors who have been harmed by corporate wrongdoing,” said Christina D. Saler, who joins the firm as Of Counsel in its Securities Litigation & Investor Protection group. “I am thrilled to be part of such a talented and accomplished group of people.”

Before joining Cohen Milstein, Mr. Maser and Ms. Saler worked for almost a decade at Chimicles & Tikellis LLP, a prominent securities class action plaintiffs law firm.  Together, they helped create and formalize the firm’s securities monitoring program and developed critical relationships with a wide range of institutional investors, including the Pennsylvania State Employees Retirement System, Southeastern Pennsylvania Transportation Authority and the Boston Retirement System.

At Chimicles & Tikellis, Mr. Maser worked with over 25 public fund and labor organizations with more than $200 billion in assets, recovering more than $3.6 billion for his clients. With 25 years engaging institutional clients and working in both the private and public sectors, he has earned a reputation as a skilled diplomat and strategic consensus builder. Outside of his work as an attorney, he also serves as Vice Chairman of the Board of Governors for the Pennsylvania State System of Higher Education (PASSHE) and Chairman of the Garces Foundation.

At Chimicles & Tikellis, Ms. Saler distinguished herself as a skilled litigator and trusted client counselor of public pension funds and other institutional investors located across the country. In the early years of her career, she gained significant trial experience prosecuting First Amendment cases involving individual plaintiffs against media defendants. Ms. Saler has also successfully litigated several consumer protection class actions.  As a result of her work, Ms. Saler has been recognized by Law & Politics and Philadelphia Magazine as a “Rising Star.” Additionally, she was appointed by Pennsylvania Governor Tom Wolf to the Board of the Pennsylvania Humanities Council, where she serves as a member of the Executive Committee and co-chairs the Government Advocacy Committee. She is also a volunteer for the Philadelphia Volunteer Indigence Program, where she represents individuals in jeopardy of losing their homes in the Philadelphia Common Pleas Court’s Mortgage Foreclosure Program.

For media inquiries, please contact Anna Susman at 646.200.5285 or send an email.

ABOUT COHEN MILSTEIN SELLERS & TOLL PLLC

Founded in 1969, Cohen Milstein Sellers & Toll PLLC is recognized as one of the premier law firms in the country handling major, complex plaintiff-side litigation. With over 90 attorneys, Cohen Milstein has offices in Washington, D.C., Chicago, Ill., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa., and Raleigh, N.C. 

FOR IMMEDIATE RELEASE

North Carolina Resident Alleges DuPont & Chemours Endangered Her Family’s Health, Safety and Property by
Dumping Toxic Chemicals into State Water Supply

Plaintiff Represented by Same Court-Appointed Lead Attorney in Lawsuits Over
Water Contamination in Flint, Michigan

WILMINGTON, N.C. – Multinational chemical corporation DuPont (NYSE: DD) and its wholly-owned subsidiary, the Chemours Company (NYSE: CC), exposed hundreds of thousands of North Carolinians to water laden with toxic chemicals that have been linked to a wide range of diseases, public health, and environmental effects, and misinformed the government and public about the health dangers created by their actions, according to a federal class-action lawsuit filed late Monday. The allegations were made on behalf of North Carolina residents, in five counties that get their drinking water from a river contaminated by the companies’ dumping. The plaintiff is a resident of the region; her whose drinking water was recently tested and found to have severely elevated levels of GenX and other poisonous substances. She says the companies’ decades-long toxic dumping has endangered the lives and health of residents and seriously affected their properties and property values.

According to the U.S. Centers for Disease Control and Prevention, the affected counties — New Hanover, Bladen, Brunswick, Cumberland, and Pender — have the highest concentration of liver disease in the United States. Further, the North Carolina Department of Health and Human Services says the rates of liver, pancreatic, testicular and kidney cancers are higher in the five counties than anywhere else in the state.

Since 1980, DuPont and Chemours have been dumping toxic waste, including byproducts of C8, GenX, and Nafion, into a river that supplies drinking water to five North Carolina counties with a combined population of over 750,000. As DuPont’s own testing has shown, these poisons can cause liver, pancreatic, testicular and kidney cancer, liver disease, fetal and birth defects.

“For over 35 years, DuPont and Chemours have put the lives and health of hundreds of thousands of men, women, and children at risk,” said Ted Leopold of Cohen Milstein Sellers & Toll, co-counsel for the plaintiff in the suit. “Nothing will take away the health risks these North Carolinians have experienced, but it is important that these willful acts by DuPont and Chemours be brought to light so corporate misconduct of putting innocent lives at risk will stop. These defendants need to be held accountable and take full responsibility for their actions.”

Leopold is also co-lead counsel in a class action brought by Flint, MI residents against Gov. Rick Snyder, 17 local government officials, the City of Flint and a group of engineering companies over the now-infamous contamination of the Flint water supply.

DuPont, a multinational chemical manufacturer, develops high-performance polymers for use in products across various industries, including Teflon, which uses the chemical GenX in its manufacturing process, and Nafion, a product which is a compound of Teflon and other fluoridated chemicals. The Chemours Company is a wholly-owned subsidiary of DuPont, under which it had been depositing byproducts of GenX and Nafion into the Cape Fear River for years – even prior to its spinoff from DuPont – from its 2,000-acre Fayetteville Works plant, located upstream from the drinking water intakes of the five counties.

Despite conducting multiple internal tests that confirmed the toxicity of GenX, DuPont dismissed its own findings, continued the dumping and never disclosed the existence of the toxic waste or the related test results to residents or local utility companies. The complaint asserts that DuPont “failed to tell the EPA that it had been discharging GenX for decades without meeting regulatory waste standards.” As detailed in the lawsuit, the company even represented to the U.S. Environmental Protection Agency that GenX was sent to an off-site incinerator, a claim later proven to be false.

Chemours admitted publicly to discharging GenX in the North Carolina public water supply in June 2017, after a team of researchers from the North Carolina State University detected the chemical downriver from the Fayetteville Works plant. In September 2017, the North Carolina Division of Water Resources sought to suspend Chemours’ National Pollutant Discharge Elimination System (NPDES) permit, citing the company’s years-long misrepresentation and failure to disclose the dumping of GenX and Nafion byproducts.

In response to the now-public health crisis, North Carolina established a health-based standard for GenX of 140 ppt. According to the complaint, a June 2017 sampling of bottom sludge collected from a water heater at a residence in Brunswick County detected GenX at 857 ppt in the top layer of sludge and 623 ppt in the bottom layer of sludge. The lead plaintiff in the case has tap water with GenX levels that exceed the state standard.

“Can you imagine what it’s like worrying if the water you’re giving your family could kill them? That’s my daily reality and the reality of so many families across areas of North Carolina that get their water from the Cape Fear River,” said plaintiff Victoria Carey, a resident of Leland, North Carolina. September 2017 testing of water drawn from her home revealed elevated levels of GenX and Nafion that exceeded regulatory standards.

Ms. Carey continued: “I’m standing up because I can’t let DuPont and Chemours get away with putting our health at risk and contaminating our properties. DuPont and Chemours need to take responsibility for their years of bad actions and willful misconduct.”

“DuPont and Chemours and the responsible decision-makers within these companies put thousands of North Carolina citizens’ health at risk for years,” said Steve Morrissey of Susman Godfrey, L.L.P, co-counsel for the plaintiff in the suit. “The residents of North Carolina have suffered long enough and deserved better. We look forward to getting them the protection and justice they both need and deserve.”

The toxic dumping has not only polluted more than 100 miles of the river but also caused extensive damage to thousands of miles of municipal and residential piping. Chemicals like GenX and Nafion are nearly impossible to eradicate from the water supply once contamination has occurred. They are known to bond with pipes, microbes, plants, animals, and sediments and water authorities are not able to filter out the chemicals. To mitigate risks, extensive water filtration is needed at the municipal and residential levels, with removal and replacement of plumbing and appliances inside the home considered the safest and most effective option, potentially costing thousands of dollars for each home.

The lawsuit filed Monday seeks class-action status on behalf of the residents in New Hanover, Bladen, Brunswick, Cumberland, and Pender counties who have been or are currently exposed to the contaminated water, as well as injunctive relief and monetary damages for repairs of private property and medical monitoring to provide health care and other appropriate services for residents.

The lawsuit was filed in U.S. District Court in the Eastern District of North Carolina. The plaintiff is represented by Ted Leopold, Martha Geer and Doug Bunch of Cohen Milstein Sellers & Toll PLLC; and Vineet Bhatia, Steve Morrissey and Jordan Connors of Susman Godfrey, L.L.P.

For media inquiries, please contact Denise Luu at 646.693.8188 or send an email.

About Cohen Milstein

Founded in 1969, Cohen Milstein Sellers & Toll PLLC is a national leader in plaintiff class action lawsuits and litigation. As one of the premier firms in the country handling major complex cases, Cohen Milstein, with 90 attorneys, has offices in Washington, D.C., Chicago, New York City, Philadelphia, Palm Beach Gardens, Fla., and Raleigh, N.C.

About Susman Godfrey

For more than thirty years, Susman Godfrey LLP has focused its nationally recognized practice on just one thing: high-stakes commercial litigation. We are one of the nation’s leading litigation boutique law firms with offices in Houston, Seattle, Los Angeles and New York. We have a unique perspective, the will to win, and an uncommon structure, which taken together provide the way to win.

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