3M to pay $7.35 billion to settle 'forever chemicals' injury claims involving up to 120,000 plaintiffs
Industrial conglomerate 3M has agreed to commit nearly $7.35 billion over nine years to settle personal injury claims linked to exposure to PFAS, commonly known as "forever chemicals", Reuters reported on Tuesday.
The settlement addresses approximately 99% of current personal injury claims filed against the company, both within and outside the Aqueous Film-Forming Foam Multi-District Litigation (AFFF MDL). According to 3M, between 115,000 and 120,000 plaintiffs are eligible to participate in the agreement.
PFAS, or per- and polyfluoroalkyl substances, are a group of manufactured chemicals widely used in products designed to resist heat, stains, grease and water. They are commonly associated with industrial applications and have become a major environmental and public health concern because of their persistence in the environment.
Exposure to certain PFAS has been linked to several health problems, including liver damage, lower birth weight, reduced antibody responses to vaccines, and kidney and testicular cancer.
Under the agreement, 3M expects to record a pre-tax charge of $5.8 billion in the fourth quarter. However, the company said the charge would not affect its previously issued financial forecast.
The payment structure will spread the settlement amount over nine years. It includes an initial payment of $50 million in 2026, with no payments scheduled for 2027. Approximately 20% of the total payments will be due during the final two years of the agreement.
3M CEO William Brown described the agreement as a significant development for the company.
"This settlement is a significant milestone for 3M and substantially reduces litigation uncertainty," Brown said in a statement on Tuesday, according to Reuters.
The company did not admit liability as part of the settlement and said it remained prepared to defend itself against litigation.
3M added that all remaining and future personal injury claims, both within and outside the AFFF MDL, would be handled through several settlement mechanisms.
The latest agreement follows another major settlement reached by 3M in 2023, when the company agreed to pay $10.3 billion to several US public water systems to resolve claims related to drinking water contamination caused by PFAS.
The chemicals have attracted increasing scrutiny because of their widespread industrial use and persistence in the environment.
Several other chemical manufacturers, including DuPont, Corteva and Chemours, are also facing lawsuits related to PFAS contamination.
The growing litigation has raised concerns about the financial and legal exposure of companies involved in manufacturing and using these substances.
The settlement comes as 3M moves away from manufacturing PFAS.
The company said on Tuesday that it had successfully completed its previously announced plan to discontinue the manufacture of all PFAS globally by the end of 2025.
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