LEGAL PROCEEDINGS

3 Months Ended

Mar. 31, 2024

LEGAL PROCEEDINGS [Abstract]

LEGAL PROCEEDINGS

NOTE 16 – LEGAL PROCEEDINGS

Periodically, we are involved in other proceedings or litigation arising in the ordinary course of business.  We do not believe that the ultimate resolution of these matters will materially affect our business, financial position or results of operations.  However, we cannot ensure that we will prevail in any litigation and, regardless of the outcome, may incur significant litigation expense and may have significant diversion of management attention.

Several of the water systems of Artesian Resources’ subsidiaries are eligible claimants in two multi-district litigation, or MDL, class action settlements designed to resolve Claims for per - and polyfluoroalkyl substances, or  PFAS, contamination in Public Water Systems’ Drinking Water, as those terms are defined in the respective Agreements (the “Settlements”), which are with two groups of settling defendants on behalf of: (1) the 3M company (“3M”); and (2) E.I. Du Pont de Nemours and Company (n/k/a Eidp, Inc.), DuPont de Nemours Inc., The Chemours Company, The Chemours Company FC, LLC, and Corteva, Inc. (collectively, “DuPont”).  The DuPont settlement is effective, and the phase one settlement claims forms are due by June 17, 2024. The 3M settlement is not effective yet, and the phase one settlement claims forms will be due sixty days after the effective date, which has not yet been established. Artesian Resources’ eligible systems have remained in the multi-district litigation class action settlements with 3M and DuPont, having elected not to opt out in advance of the opt-out deadline.  The amount of any recovery, if any, by Artesian Resources’ subsidiaries is uncertain.