3M Commits Nearly $7.4 Billion to Settle PFAS-Related Claims

3M Co. is committing $7.35 billion over nine years to settle litigation related to its use of chemicals known as PFAS.

The company said the commitment would address almost all of the 115,000 to 120,000 personal injury claims that are being litigated in a federal court in South Carolina.

3M will make a $50 million payment in 2026, and no payments in 2027, according to a statement. Approximately 20% of payments are due in the final two years, the company said. This schedule will “align to 3M’s remaining payment obligations for other legacy settlements,” according to the company.

The deal advances a costly and lengthy effort by the maker of Post-it notes to resolve legal claims tied to its history making per- and polyfluoroalkyl substances.

The class of thousands of chemicals were used to make products including stain-proof textiles and foams used by firefighters to extinguish jet-fuel blazes. The substances are notoriously resilient, meaning they persist in drinking water and soil, and have been associated with an array of health problems including cancer.

3M shares rose 1.7% in late trading in New York. The stock has advanced 11% this year through Tuesday’s close, in line with the S&P 500 Index.

Chief Executive Officer William Brown said in the statement that the settlement “substantially reduces litigation uncertainty.”

Last year, 3M reached an agreement to resolve PFAS-related claims in New Jersey. The company recorded a pre-tax charge of about $285 million and said it would make payments over 25 years related to PFAS-related claims in the state.

In 2023, it agreed to pay as much as $12.5 billion over 13 years to resolve claims filed by municipal utilities that PFAS polluted drinking water across the US.

3M vowed to stop producing the chemicals by 2025.

Top photo: In this photo illustration, water from a tap fills a glass on July 06, 2023 in San Anselmo, California. According to a study by the U.S. Geological Survey, nearly half of the tap water in the United States is contaminated with “forever chemicals” that are considered dangerous to human health. Per and polyfluorinated alkyl substances, or PFAS, are chemicals that linger in the body and are linked to health issues like cancer, obesity, liver damage, decreased fertility, thyroid disease, high cholesterol and hormone suppression. (Photo Illustration by Justin Sullivan/Getty Images) Photographer: Justin Sullivan/Getty Images North America. Bloomberg.