* Invista claimed misled on safety of plants
* DuPont claimed Invista violated contract's terms
* Invista, Justice Department entered large 2009 settlement
June 29 DuPont Co has settled a $745
million lawsuit brought by Koch Industries Inc's Invista unit
over safety and environmental problems at plants once owned by
the large chemical company.
Terms of the settlement were not disclosed in a joint
statement from the companies on Friday.
Invista is a large fiber and polymer producer that once
comprised DuPont's textiles and interiors business, and which
Koch purchased from DuPont for about $4.4 billion in 2004.
Four years later, Invista sued to recover cleanup costs at
facilities transferred in that sale, accusing DuPont of
misleading it about health and safety conditions there.
DuPont had countered that it was not responsible to cover
cleanup costs because Invista had violated contractual terms
relating to environmental indemnification.
A non-jury trial expected to run eight weeks began on June 4
before U.S. District Judge Sidney Stein in Manhattan, but was
put on hold this week as the settlement was being worked out.
In April 2009, the U.S. Department of Justice said Invista
agreed to pay a $1.7 million civil fine and spend up to $500
million to correct environmental problems at plants in seven
Invista had earlier disclosed more than 680 regulatory
violations to the Environmental Protection Agency after auditing
12 facilities it had bought from DuPont. The Justice Department
had called the accord the largest under the EPA's audit policy.
Privately held Koch Industries is based in Wichita, Kansas,
and controlled by the billionaire brothers Charles and David
Invista is also based in Wichita. It has several well-known
brands including Lycra fiber and Stainmaster carpet, and also
makes nylon, which DuPont had invented in the 1930s.
DuPont is based in Wilmington, Delaware.
The case is Invista BV et al v. EI DuPont de Nemours and Co,
U.S. District Court, Southern District of New York, No.