Wilmington, DL, May 20--DuPont said a federal grand jury is seeking documents on a chemical used to make Teflon nonstick coatings that has been the subject of safety concerns.
The company said it was served with a subpoena by the U.S. Justice Department's Environmental Crimes Section.
The subpoena comes a month after DuPont agreed to settle allegations by the U.S. Environmental Protection Agency that it had failed for 20 years to disclose health data about the chemical, perfluorooctanoic acid (PFOA).
The subpoena seeks documents that were previously turned over to the EPA, as well as other documents, DuPont said.
Although PFOA is used to make Teflon, it is not present in the coating which is applied to cookware, car parts or flooring.
"They haven't provided us any specifics ... beyond asking for documentation," said DuPont spokesman Clif Webb.
The company must turn over the materials by late June.
"I would be quite surprised to see this develop into anything serious in terms of major fines," said Gene Pisasale, an analyst with Wilmington Trust Corp., whose investments include 22.8 million DuPont shares.
"Fines in the couple hundred million dollar level would be exceptional," he added. "I don't think (investors) are expecting any fines of that level or higher."
DuPont set aside $15 million in the first quarter as a result of an April 21 agreement to settle with the EPA. The settlement is still being worked out.
PFOA remains in humans for years, according to the EPA, and while small amounts are believed to be present in a large proportion of the U.S. public, it is not known whether the chemical presents a human health hazard.
A preliminary study by the EPA found evidence that the chemical can cause cancers in rats.
The draft report said PFOA targets the liver in rats and could raise cholesterol and triglyceride levels in people. DuPont has acknowledged that finding, but said it has found no overall health problems.
In March, the company announced plans to replace PFOA in some products by late 2006.
