BASF enters class settlement with U.S. public water systems

BASF Corporation, the North American unit of BASF SE, has agreed to settle with a group of public water systems nationwide that detected PFAS in their drinking water sources, claiming it was related to the use of Aqueous Film Forming Foam (AFFF) products.

Some of the AFFF products involved in the lawsuit are produced using surfactants produced by Ciba, a company BASF acquired in 2009. Under the terms of the agreement, BASF agreed to contribute $316.5 million ($312.5 million to resolve PFAS claims and $4 million to resolve administrative expenses). The settlement releases these claims against BASF, Ciba and other related corporate entities.

This settlement was entered in connection with the previously disclosed AFFF multi-district litigation (MDL) being overseen by the United States District Court for the District of South Carolina (the MDL Court). BASF will pay $4 million on or about July 15, 2024, and $312.5 million on March 1, 2025. BASF is insured with multiple insurance companies and is pursuing settlement payments under those policies.

There are still some procedural and legal steps that must be taken before settlement and payment are finalized. The settlement is subject to MDL court approval and other contingencies, a process expected to take several months.

This settlement does not constitute an admission by BASF or Ciba of their liability or fault. If the MDL court does not approve the agreement or certain terms are not met, BASF will continue to defend itself in the proceedings. BASF also intends to continue to defend itself in all remaining AFFF matters.