Freeport Unit Sues Mitsui Over Entity Scheme to Dodge Well Costs

Mitsui & Co. has engaged in a years-long scheme to evade environmental liabilities by setting up sham US entities, funneling their profits to Japan, and dissolving them when the bill comes due, a newly filed lawsuit says.

A Freeport-McMoRan Inc. affiliate sued one of those subsidiaries Thursday, saying the Japanese conglomerate canceled its certificate of incorporation in 2019 as part of its “continuous and systematic practice” of dodging well-maintenance costs by placing its global assets beyond the reach of US regulators and creditors.

“It is Mitsui’s practice to form United States single-purpose entities to acquire, own and divest lease interests ...