3M Agrees to 7.35 Billion Dollar PFAS Injury Settlement

Shares of 3M rose more than 1% overnight Tuesday after the American manufacturer agreed to a 7.35 billion dollar settlement addressing personal injury lawsuits linked to PFAS chemicals. The nine-year agreement covers an estimated 115,000 to 120,000 eligible plaintiffs and nearly 99% of existing related claims.

According to 3M, the settlement carries a pretax present value of approximately 5.8 billion dollars. The agreement addresses lawsuits alleging personal injuries associated with per- and polyfluoroalkyl substances, commonly known as forever chemicals.

The company said the arrangement covers existing cases both inside and outside the federal multidistrict litigation in South Carolina. It also establishes provisions for current and future lawsuits.

Under the payment schedule, 3M will pay 50 million dollars in 2026, followed by no payment in 2027. Approximately 20% of the total settlement amount will be paid during the final two years of the nine-year arrangement.

The agreement also allocates 680 million dollars for additional claims. Plaintiffs who accept the settlement will receive payments under its terms, while those who choose to pursue lawsuits must follow court-established procedures and deadlines.

3M Chairman and CEO William Brown described the agreement as an important development in addressing the company's legal exposure.

"This settlement is a significant milestone for 3M and substantially reduces litigation uncertainty," said William Brown, Chairman and CEO of 3M.

The latest agreement follows billions of dollars in earlier settlements involving PFAS contamination. In 2023, 3M agreed to pay up to 12.5 billion dollars over 13 years to help US water suppliers address drinking water contamination.

The company also reached a separate settlement with New Jersey last year. These agreements form part of 3M's broader efforts to address legal claims associated with PFAS chemicals.

PFAS are synthetic substances used in various products, including stain-resistant clothing and firefighting foam. According to the source report, these chemicals can persist in the environment for extended periods and accumulate in soil and water, raising concerns about potential health effects.

3M began moving away from certain PFAS chemicals in 2000. In 2022, the company announced plans to discontinue production of all PFAS chemicals by the end of 2025.