3M Settles PFAS Claims for $7.35 Billion

3M, the chemical manufacturer based in St. Paul, Minnesota, announced on Tuesday that it has agreed to a settlement worth up to $7.35 billion. The deal resolves lawsuits from individuals claiming they were sickened by groundwater contaminated with per- and polyfluoroalkyl substances, commonly known as PFAS. These compounds are frequently found in firefighting foam and various consumer goods.

The payments will be distributed over a nine-year period to as many as 120,000 people. The contamination occurred near locations such as military bases and airports where the foam was used to extinguish fires. Under the terms of the agreement, 3M does not admit liability for the harm caused by the chemicals.

PFAS are often referred to as forever chemicals because they do not break down naturally in the environment. Health officials have linked exposure to these compounds with liver damage, immune system issues, and certain cancers. Beyond industrial applications, the chemicals are used in products designed to resist water and grease, including cookware and clothing.

William Brown, chairman of 3M, called the agreement a significant milestone that reduces the uncertainty surrounding the litigation. The company has previously settled other PFAS-related disputes, including a $450 million payment to New Jersey for natural resource contamination and a deal exceeding $10 billion with public drinking water systems. Other manufacturers, such as DuPont de Nemours Inc. and its spinoffs Chemours Co. and Corteva Inc., have also agreed to settlements totaling more than $1 billion.

Fred Thompson, an attorney with the Motley Rice law firm who helped negotiate the deal for the plaintiffs, described the settlement as welcome news for thousands of victims who have sought accountability for nearly a decade. In a news release, he stated that the plaintiffs urgently need assistance covering rising medical bills and other associated costs.

Payouts will begin with $50 million this year, followed by annual payments of more than $1 billion from 2028 through 2033. 3M may make additional payments if a sufficient number of plaintiffs participate. If too few sign on, the company can cancel the settlement and continue fighting the lawsuit. Environmental activists note that manufacturers knew about the health risks of these chemicals long before they became public, pointing out that the same resistance to breakdown that makes them useful also makes them hazardous.

The Environmental Protection Agency has established strict limits on PFAS in public drinking water and requires testing, but these rules do not cover private wells. A study intended to identify which industries dump these chemicals in wastewater has been stalled for two years while awaiting review by the White House Office of Management and Budget.