Fifteen U.S. states and Guam sued Corteva on Thursday, Oct. 1, challenging the separation of its seed and genetics business into Vylor, which began operating as an independent publicly traded company the same day. The lawsuit alleges that Corteva transferred valuable assets while leaving behind potential liabilities worth tens of billions of dollars tied to PFAS, the so-called "forever chemicals." The dispute matters to U.S. agriculture because it involves a major supplier of seed genetics and could shape the financial structure of two companies serving American farmers.

According to Reuters, the lawsuit was filed in Indiana state court by a bipartisan coalition of state attorneys general. The states allege that Vylor received some of Corteva's most valuable assets without taking responsibility for liabilities connected to PFAS contamination. Corteva emerged from the corporate restructuring involving Dow and DuPont and inherited responsibility for some DuPont-related PFAS liabilities. Thousands of lawsuits have alleged environmental contamination and potential health risks stemming from the chemicals, although the underlying claims and responsibility remain subject to litigation.

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Corteva has rejected the states' characterization of the dispute. The company previously described their PFAS claims as "speculative and unproven" and emphasized that Corteva itself never manufactured or sold PFAS products. The states, however, contend that transferring the seed operation to Vylor moved a highly profitable business away from entities facing environmental claims. New Hampshire Attorney General John Formella said companies cannot move valuable assets out of reach while leaving states, communities and taxpayers responsible for remaining liabilities, Reuters reported.

The separation creates two distinct agricultural businesses. Corteva will focus on crop protection products used against weeds, pests and diseases, while Vylor will concentrate on seeds and genetics. That distinction makes the legal battle relevant to the U.S. farm sector, where seed technology and crop protection represent major input costs and influence yields and production decisions. Vylor CEO Chuck Magro said the company aims to address challenges including food and energy security and is targeting net sales of $11.2 billion to $11.9 billion by 2029.