$615 Million Settlement Agreement tied to AFFF Announced by Carrier Global Corp
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Documents filed with the SEC reveal that a major settlement agreement involving aqueous film-forming foam (AFFF) has been agreed to. Carrier Global Corp — the former parent company of AFFF manufacturer Kidde-Fenwal — reported details on Friday of the combined $615 million settlements, which will be paid out over five years.
Carrier entered into agreements with Kidde-Fenwal, the unsecured creditors formed as part of that company’s bankruptcy and plaintiffs from the AFFF multidistrict litigation based in South Carolina.
AFFF, a fire suppressant commonly used in military bases and airports, has been the subject of significant litigation in recent years over the toxic PFAS chemicals that the foam contains. Those chemicals have been blamed for the development of cancer and other serious health conditions. Lawsuits have also been filed over water contamination.
There are nearly 10,000 AFFF lawsuits pending in the South Carolina MDL, with numerous manufacturers and corporations listed as defendants.
Carrier Subsidiary Sold AFFF for Years, Triggering Lawsuits
Carrier’s ties to AFFF litigation stem from its former subsidiary, Kidde-Fenwal. The company sold AFFF products from 2007 to 2013 before becoming a Carrier subsidiary as part of a spinoff from UTC in 2020.
Once the litigation involving AFFF began to expand, Kidde-Fenwal was hit hard. According to Reuters, it was named as a defendant in 4,400 lawsuits from 2016 to 2023.
Kidde-Fenwal filed for bankruptcy due to the mounting litigation in 2023.Carrier stated publicly that it would not financially support the company at that time. A deal was completed to sell Kidde-Fenwal’s assets to Pacific Avenue Capital Partners earlier in 2024.
Carrier is hopeful that its new settlements will resolve much of the litigation the company remains tied to.
“Non-settling parties may still assert direct AFFF-related claims, although we expect a vast majority of public water providers and airports will participate in the Direct Claims Settlements,” it said in its SEC filing.
AFFF Lawsuits Blame Cancer, Other Conditions on Foam Exposure
The litigation involving AFFF and its manufacturers has resulted from worrying health impacts connected to the firefighting foam.
AFFF contains PFAS – more commonly known as forever chemicals — that have been the subject of increased scrutiny in recent years. Lawsuits have claimed that exposure to the foam has resulted in kidney cancer, testicular cancer, ulcerative colitis and other adverse health effects.
Firefighters and other first responders have filed lawsuits after being exposed to AFFF in their professions, but public water systems have been involved as well.
According to the Washington Department of Ecology, among the most common ways that PFAS have contaminated drinking water have been AFFF system testing, fire training and accidental spills all contributing.
In August, nearly 1,500 gallons of AFFF were accidentally discharged at a Maine airport due to a faulty fire suppression system, with chunks of foam being carried away by the wind. Authorities later confirmed that drinking water in the area remained safe.
New lawsuits involving firefighting foam and its health impacts continue to be filed each month.
