3M has agreed to pay up to $7.35 billion to settle claims from as many as 120,000 people who say they were sickened by PFAS, the so-called forever chemicals. The company says the deal covers roughly 99% of current personal injury claims tied to the compounds.
Investors treated the agreement as relief from years of legal risk. 3M's stock rose about 10% on Wednesday, the first trading day after the Tuesday announcement. For accounting purposes, the company values the settlement at $5.8 billion.
a significant milestone for 3M and substantially reduces litigation uncertainty.
William Brown, 3M chairman and CEO
The money will be paid over nine years. Payments start with $50 million this year, followed by annual payments of more than $1 billion beginning in 2028. The deal also sets aside a $680 million reserve for future claims.
The settlement is not locked in. 3M could pay more if enough plaintiffs sign on, but if too few participate, it can cancel the deal and keep litigating. In a securities filing, the company said it is prepared to continue defending itself if the agreement collapses.
3M admitted no liability for the contamination as part of the agreement.
The company expects between 115,000 and 120,000 eligible plaintiffs, including firefighters, military personnel and others exposed through drinking water, firefighting operations or training. The combined lawsuits are being heard in a federal district court in South Carolina.
Fred Thompson and David Hoyle, partners at the South Carolina law firm Motley Rice, said the deal was welcome news for victims who had sought accountability for nearly a decade and who urgently need help with mounting medical bills. The firm said the plaintiffs include multiple Minnesotans.
The Minnesota-based company made firefighting foam containing PFAS that was used to fight fires and train crews at airports and military bases across the country. The chemicals seeped into groundwater used for drinking.
PFAS do not break down naturally in the environment. Some have been linked to cancer, liver and thyroid problems, immune system damage and low birth weight.
The deal adds to a string of earlier PFAS payouts by 3M. In 2023, it reached a $10.3 billion settlement with U.S. public water suppliers, and this year it agreed to pay $450 million to New Jersey. Minnesota settled with the company for $850 million after suing in 2010 over chemical dumping in the east Twin Cities metro.
3M says the injury claims relate mainly to compounds it phased out in the early 2000s, and it stopped making all PFAS at the end of last year. The agreement also anticipates a court order setting evidentiary and timing requirements for people who may try to sue in the future.
