09:18 AM EDT, 10/21/2024 (MT Newswires) -- Carrier Global ( CARR ) said in a regulatory fling late Friday that it will pay $615 million in cash over five years as part of proposed settlements in litigation over damages caused by aqueous film-forming foam in a case pending in US federal court in South Carolina.

Carrier said it reached a settlement agreement with KFI Wind-Down, the official committee of unsecured creditors appointed in KFI's bankruptcy case, as well as co-leads of the plaintiffs' executive committee.

KFI was a legal entity spun off by United Technologies as part of Carrier's separation from the company in April 2020. KFI owned and operated a business that sold aqueous film-forming foam, which allegedly harms drinking water, and filed for Chapter 11 bankruptcy protection last year.

Carrier said the proposed settlements do not constitute an admission of liability or wrongdoing.

Carrier also said it will be entitled to receive up to $2.4 billion in proceeds from KFI insurance policies, with the first $125 million going toward toward settlements. Carrier said it expects insurance payments to cover the proposed settlements.

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