Industrial conglomerate 3M has committed nearly $7.35 billion over nine years to settle personal injury claims related to PFAS 'forever chemicals.'
Industrial conglomerate 3M announced on Tuesday that it will commit nearly US$7.35 billion over nine years to settle personal injury claims related to PFAS, often referred to as "forever chemicals."
The settlement is intended to address approximately 99 per cent of current personal-injury claims, both inside and outside the Aqueous Film-Forming Foam Multi-District Litigation (AFFF MDL). According to the company, between 115,000 and 120,000 plaintiffs are eligible to participate in the settlement.
Regarding the timeline of payments, the company stated the structure includes:
3M expects to record a pre-tax charge of US$5.8 billion in the fourth quarter. The company noted that this charge would not impact its previously issued forecast. Additionally, one report noted the payments have a present value of $5.8 billion and that the agreement includes a $680 million reserve for remaining and future claims.
PFAS are a group of manufactured chemicals used in products designed to be resistant to water, grease, stains, and heat. These substances are described as being notoriously resilient, meaning they persist in soil and drinking water and accumulate in the human body. They have been linked to various health issues, including kidney and testicular cancer, liver damage, reduced antibody response to vaccines, lower birth weight, thyroid disease, high cholesterol, obesity, and hormone suppression.
3M stated that the settlement does not constitute an admission of liability, and the company noted it remains prepared to continue to defend itself in litigation. The company also flagged that it can terminate the settlement if the participation of plaintiffs falls below a certain threshold.
In 2023, 3M reached a US$10.3 billion settlement with a host of US public water systems to resolve water pollution claims tied to these chemicals. In a separate matter, 3M reached an agreement to resolve PFAS-related claims in New Jersey, recording a pre-tax charge of approximately $285 million with payments spanning 25 years.
3M CEO William Brown said in a statement on Tuesday, “This settlement is a significant milestone for 3M and substantially reduces litigation uncertainty.”
As part of its broader strategy, 3M stated on Tuesday that it has successfully completed its previously announced plan to discontinue the manufacture of all PFAS globally by the end of 2025. The company has been phasing out these compounds since 2000 under government pressure.
Other companies, including Chemours, Corteva, and DuPont, are also facing lawsuits related to PFAS.
Regarding the legal proceedings, Motley Rice Attorneys Fred Thompson, who serves as liaison counsel for MDL No. 2873, and David Hoyle, who served as a member of the 3M settlement negotiation team, said in a mailed statement: "For the thousands of victims who have sought answers and accountability for nearly a decade, 3M’s $7.35 billion settlement is welcome news."
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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