Sixteen states and territories filed suit against Corteva and its newly created seeds and genetics spinoff, Vylor, on Wednesday, seeking to unwind a transaction they say moved roughly $40 billion in asset value — three-quarters of DuPont's worth — beyond the reach of PFAS claimants.

The lawsuit, filed in Marion County state court in Indiana, names Corteva, Vylor, and EIDP Inc., the entity historically known as DuPont that now operates as a Corteva subsidiary. It arrived the same day Corteva announced Vylor's official creation, and one day after a federal judge rejected a separate attempt to block the spinoff.

"This fraudulent transfer action is necessitated by the decision of Old DuPont and its corporate parent, Corteva, to spin-off three-quarters of Old DuPont's asset value into Vylor, a newly created entity, free and clear of Old DuPont's massive PFAS liabilities," the complaint states. "In connection with the spinoff, Vylor received the crown jewels of Old DuPont's business but did not assume any of its PFAS liabilities."

According to Indiana Attorney General Todd Rokita, the suit "seeks to unwind a coordinated transfer that moved DuPont's most valuable business assets into Vylor and left the PFAS liabilities behind, out of reach of the states and other plaintiffs."

A hearing on the states' request for a temporary restraining order is scheduled for Friday. The proposed order would freeze the assets — stopping DuPont and Corteva from using remaining funds for dividends and stock buybacks, and barring Vylor from selling or pledging the seed assets it just received.

Federal court already turned states away

The state-court filing follows a loss in federal court. U.S. District Judge Richard Mark Gergel of South Carolina denied the states' motion for a TRO and injunction on Tuesday, citing "multiple reasons."

"First, though plaintiff has known about the challenged transaction since at least Dec. 4, 2025, it waited until 17 days before the challenged transaction was to close to file the instant motion," Gergel wrote. "This was not the 'appropriate time' to file such a motion — a motion with over 1200 pages of exhibits, including expert reports obviously prepared well in advance."

The new complaint argues the Vylor deal differs from earlier corporate restructurings in a critical way. "The entities involved in prior restructurings, including Corteva, agreed to assume all or a portion of Old DuPont's PFAS liabilities," the lawsuit says. "What makes the Vylor transaction unique — and even more concerning — is that Old DuPont moved approximately $40 billion in asset value to Vylor, but Vylor has explicitly disclaimed any responsibility for Old DuPont's conduct related to PFAS."

As a result, the states contend, "the assets that Old DuPont transferred to Vylor are no longer available to satisfy Old DuPont's massive PFAS liabilities, and are outside the reach of Old DuPont's creditors."

Stakes for the seed business

The outcome carries direct implications for Corteva's seed and genetics franchise, one of the largest row-crop input businesses in the country. A TRO blocking Vylor from selling or pledging its seed assets would constrain the new company's financing and operational flexibility at launch.

"Many families have been hurt, and are still being hurt, by these micro-chemicals that several companies knew were dangerous, and we will not sit by and let them game the system by moving their most valuable assets out of reach and leaving the PFAS liabilities they created behind," Rokita said. "They spent years setting up this transfer to avoid paying for actions that have harmed so many, and this lawsuit is how we stop them from getting away with it."

The plaintiffs include 15 states — Indiana, Alaska, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Mexico, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont and Washington — plus the U.S. territory of Guam.

Corteva's response

Corteva could not be reached for comment on the state suit. In federal court, the company called the states' claims speculative, unproven and based on "novel legal theories and groundless assumptions." Corteva noted that California and other states that have litigated the issue hold no judgments against the company related to PFAS liability, and said its balance sheet will be "well-equipped" to cover any liability it might face.

Corteva was formed in 2019 from the merger of Dow Chemical and DuPont. The company has said its existing liability-sharing arrangements from prior restructurings remain in place.

The Marion County judge's ruling on the temporary restraining order, expected after Friday's hearing, will determine whether the $40 billion asset transfer stays intact while the fraudulent transfer claims proceed.