South Raleigh News

Attorney General Josh Stein has initiated legal action against Pactiv Evergreen on behalf of the North Carolina Department of Commerce. The lawsuit follows the abrupt closure of a paper mill in Canton, which had been operational for over a century and employed more than 1,000 workers.

The Attorney General is seeking $12 million from Pactiv Evergreen for allegedly breaching a 2014 grant agreement with the Department of Commerce. "Taxpayers in North Carolina invested in Pactiv Evergreen to bolster our state’s economy," said Attorney General Josh Stein. "We held up our end of the bargain, and we cannot let Pactiv cut and run away with our state’s money. My office has been working with Pactiv over the last year to address the company’s obligations under the JMAC agreement, but it has become clear that legal action was necessary to hold Pactiv accountable."

Governor Roy Cooper also commented on the issue: "Pactiv Evergreen’s closure of the Canton paper mill was a gut punch to our state’s economy and the people of Canton and Haywood County. This company broke its commitment to keep the mill open and the state is taking action to hold them accountable."

Canton Mayor Zeb Smathers expressed his support for Attorney General Stein's actions: "I’m very appreciative for the actions of Attorney General Stein and the DOJ, but not surprised. AG Stein and his team are doing exactly what they said they would do when the mill closed, hold the company accountable. We teach our children that when you make promises, you keep those promises. Pactiv Evergreen took $12 million from the State in exchange for a promise to keep the mill open; a promise they did not keep. We fully support the DOJ’s efforts to recover this money and hold Pactiv accountable to taxpayers of North Carolina."

The JMAC Agreement provided Pactiv Evergreen with $12 million in economic development incentives in exchange for maintaining operations—and at least 800 jobs—at its Canton paper mill through December 31, 2024. However, Pactiv Evergreen closed its operations and terminated all employees in May 2023.

A copy of the complaint can be viewed here.