States Sued to Block $40 Billion Asset Transfer
Indiana and 16 other states filed a lawsuit to stop chemical companies from allegedly shielding assets.
Updated on Oct. 5, 2026 in Law
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Indiana Attorney General Todd Rokita led a 17-state coalition in a lawsuit targeting EIDP, Corteva, and Vylor. The plaintiffs claim these companies orchestrated a $40 billion asset transfer to shield funds from future PFAS-related legal liabilities.
Why it matters
The lawsuit alleges that the corporate restructuring was designed to prevent payouts for environmental damage caused by PFAS contamination. Plaintiffs are seeking a temporary restraining order to freeze the transferred assets until the case is resolved.
The lawsuit represents a multi-state legal challenge involving 17 states and territories filed on Oct. 1, 2026. This follows a 2024 legal action that named 22 different chemical companies regarding PFAS contamination.
The players
Todd Rokita
He is the Indiana Attorney General who is leading the multi-state legal coalition against the chemical companies.
Corteva
This is a chemical company based in Indianapolis that has rejected the legal claims brought against it.
EIDP
This is a chemical company that split off assets into a new entity named Vylor.
Vylor
This is an Iowa-based company that received $40 billion in assets from EIDP and has disclaimed liability for PFAS damages.
The details
The suit specifically challenges the formation of Vylor, an Iowa-based company created when EIDP split off assets. The states argue that Vylor has improperly disclaimed responsibility for legacy PFAS liabilities previously associated with Old DuPont.
Timeline
In 2024, Indiana Attorney General Todd Rokita filed an initial lawsuit regarding PFAS.
In July 2026, the Trump administration proposed rollbacks for PFAS regulations.
On Oct. 1, 2026, Indiana led the multi-state filing against the chemical companies.
On Oct. 2, 2026, a Corteva spokesperson formally rejected the claims made in the lawsuit.
Political Context
Opponents and industry advocates argue that such litigation unfairly targets private corporate restructurings and complicates the regulatory environment. They contend that existing federal guidelines provide sufficient frameworks for addressing environmental concerns without state-level intervention.
The outcome of this lawsuit could determine the availability of funds for future environmental cleanup efforts across the country. Citizens may see long-term impacts on public health funding and local utility costs if the companies are successfully held liable for contamination.
The takeaway
This case highlights the increasing tension between large-scale corporate restructurings and potential environmental liabilities. Readers should remain aware that legal battles over corporate responsibility for chemical contaminants often span multiple years and can significantly alter environmental policy.
Further reading
For broader context on ongoing environmental litigation, see the Law section.
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Should corporations be held responsible for environmental damages after moving assets to a new company?
