3M Settlement: $7.35 Billion Payout for PFAS Claims

St. Paul-based chemical manufacturer 3M will pay up to $7.35 billion to resolve lawsuits alleging that groundwater contaminated with per- and polyfluoroalkyl substances harmed local residents. The company announced the agreement Tuesday, outlining a nine-year payment schedule for as many as 120,000 individuals who claim injury from exposure to the compounds. The settlement does not require 3M to admit liability for the contamination.

The funds will address claims related to firefighting foam and other consumer products that released PFAS into the environment. These chemicals, often called "forever chemicals" because they do not naturally degrade, have been linked to liver damage, immune system issues, and certain cancers. Contamination has been documented near military bases, airports, and other sites where the foam was used. PFAS are also ingredients in nonstick cookware, water-resistant clothing, and grease-proof packaging.

William Brown, chairman of 3M, described the deal as a "significant milestone" that reduces uncertainty in the litigation. This agreement follows other settlements by the company, including a $450 million deal with New Jersey over natural resource claims and a separate agreement to pay more than $10 billion to U.S. public drinking water systems. Competitors in the industry have also reached deals; DuPont de Nemours Inc., Chemours Co., and Corteva Inc. have agreed to settlements totaling more than $1 billion.

Fred Thompson, an attorney with Motley Rice who helped negotiate the deal for the plaintiffs, stated the settlement provides welcome news for victims seeking accountability after nearly a decade of litigation. Thompson noted in a news release that plaintiffs urgently need financial support to cover rising medical bills and other costs associated with their health conditions.

Payments begin with $50 million this year. From 2028 through 2033, the company will make annual payments exceeding $1 billion. The total amount paid could increase if a sufficient number of plaintiffs participate in the program. Conversely, if too few claimants sign on, 3M retains the option to cancel the settlement and continue litigating the case.

Environmental activists argue that manufacturers knew about the health risks of PFAS long before the dangers became public knowledge. They point out that the chemical stability making the substances useful in products also makes them hazardous to human health. The Environmental Protection Agency has established strict limits and testing requirements for PFAS in public drinking water, though these rules do not cover private wells. A federal study intended to identify industries dumping the chemicals in wastewater has been stalled for two years while awaiting review by the White House Office of Management and Budget.