Pactiv Evergreen has agreed to shell out $6.25 million to settle a lawsuit brought by North Carolina, which sought to recover $12 million in financial incentives tied to the continued operation of the company’s paper mill in Canton. The move comes after the abrupt closure of the facility in 2023, leaving hundreds of workers jobless and a town in turmoil.
Millions Flow Back to Canton and Haywood County
North Carolina Attorney General Jeff Jackson announced the settlement Thursday, confirming that Haywood County and Canton will receive $5.75 million, while the state pockets $500,000.
Beyond the cash payout, Pactiv also abandoned its legal efforts to reclaim its 2023 and 2024 property tax payments, a decision that spares the county and town an additional $4.5 million. The company further agreed not to bill Canton for the decades-old wastewater treatment services it once provided, a move that adds substantial value to the settlement.
“This agreement ensures millions go back into Canton’s recovery instead of endless litigation,” Jackson said. “Pactiv broke its promise, and today’s settlement holds them accountable.”
The Legal Web Unraveled
While the settlement brings closure to the state’s lawsuit, Pactiv maintains it is not an admission of wrongdoing. The legal saga dates back to 2014 when Pactiv agreed to keep at least 800 jobs in Canton through the end of 2024 in exchange for $12 million in taxpayer-funded economic incentives. But in March 2023, Pactiv abruptly announced the mill’s closure, halting production just two months later and setting the stage for the state’s lawsuit.
