Synergy Environmental Newsletter published an article written by Ellen Robbins and Matthew Schroeder analyzing the impact that per-and polyfluoroalkyl substances, a group of chemicals commonly known as PFAS, has on private equity funds and their portfolio companies. PFAS-related litigation is on the rise throughout the United States following a rise in awareness about their potential adverse effects. PFAS are found in everyday products such as food packaging and grease-resistant materials.
Robbins and Schroeder wrote, “Prudent private equity funds and their portfolio companies need to prepare for new regulations, assess their potential exposure, and focus on reducing their risk […] the EPA as well as various states have begun to take action towards classifying PFAS as a hazardous substance under CERCLA or companion state statutes. Emerging litigation surrounding PFAS’s adverse impacts has been so rapid (with a multi-district litigation pending in South Carolina and numerous other lawsuits pending across the country) — and the exposures so significant — that some have labeled PFAS as the ‘new asbestos.’”