The lawsuit alleges that the contamination is linked to the manufacturing, use and disposal of perfluorinated chemicals, including PFOA, at DuPont's Chambers Works plant plant near the Delaware Memorial Bridge.

The plaintiffs are seeking class-action status and compensatory and punitive damages for what they describe as the "intentional, knowing, reckless and negligent acts and omissions of DuPont in connection with the contamination of human drinking water supplies."

"We're looking for medical monitoring on behalf of all the people who have been exposed," said Shari Blecher, an attorney for the plaintiffs.

DuPont released a statement saying the lawsuit, filed in U.S. District Court in New Jersey, is without merit.

"We are confident in the safety of our operations at our Chambers Works site," the company said.

PFOA, or perfluorooctanoic acid, is a processing aid used in the manufacturing of fluoropolymers, which have a wide variety of product applications, including nonstick cookware. The chemical also can be a byproduct in the manufacturing of fluorotelomers used in surface protection products for applications such as grease-resistant food wrapping.

According to the lawsuit, DuPont has known for years that PFOA was being released into the air from operations and activities at the Chambers Works plant, and was contaminating the groundwater.

A 2003 report by DuPont found that PFOA was being released into the Delaware River at concentrations as high as 194 parts per billion,and had been detected in a water intake for Salem Canal, designated as a drinking water source by New Jersey regulators, at a concentration of .089 parts per billion, according to the complaint.

Similar concentrations have been found in recent testing of wells owned by Penn's Grove Water Supply Co., which supplies public drinking water to the towns of Penns Grove and Carney's Point, the lawsuit claims.

"The levels alleged in the complaint fall well below any established regulatory guidance," DuPont said.

"Moreover, to date, there are no known human health effects associated with PFOA. Based on health and toxicological studies conducted by DuPont and other researchers, DuPont believes the weight of evidence indicates that PFOA exposure does not pose a health risk to the general public."

In early March of this year, federal officials quietly admitted that PFOA may be unsafe to humans and the environment.

"Based on recent information, EPA can no longer conclude that these polymers will not present an unreasonable risk to human health or the environment," the Environmental Protection Agency said in a proposal published in a federal legal register. DuPont and the EPA both have said that Teflon is safe for consumers, but have agreed to a phase-out plan for some fluorine-containing chemicals used in its production.

In 2004, DuPont agreed to pay as much as $343 million to settle a class-action lawsuit filed by Ohio and West Virginia residents who alleged that their water supplies had been contaminated with PFOA from a DuPont plant in Parkersburg, W.Va. The company agreed to spend up to $70 million for medical evaluations of up to 80,000 people who drank water contaminated with the chemical. DuPont also agreed to provide six local utilities with new water treatment equipment and fund an independent study to determine if PFOA makes people sick. Eventually, DuPont could be forced to spend another $235 million on a program to monitor the health of residents exposed to the chemical.

The plaintiffs in the New Jersey lawsuit say DuPont hasn't undertaken similar efforts to protect New Jersey residents.

"As of today's date, DuPont has not offered to provide and/or pay for any treatment of any public or private water supplies near DuPont's Chambers Works plant that are contaminated with PFOA or any other PFCs attributable to DuPont's Chambers Works plant, nor has DuPont offered to supply bottled water to those using the contaminated water in New Jersey," the complaint states.

In addition to contaminated water supplies, the lawsuit alleges that DuPont found elevated levels of organic fluorine in the blood of Chambers Works employees exposed to perfluorinated chemicals in the 1970s, and that the workers had higher incidences of medical disorders, including abnormal liver function tests, when compared with nonexposed workers. The company has been monitoring for PFOA in recent years.

The lawsuit also alleges that DuPont rejected the recommendation of its own occupational health official for a comprehensive medical surveillance program for workers exposed to perfluorinated chemicals.

Staff reporter Jeff Montgomery contributed to this article.