3M to pay $7.35 billion in PFAS groundwater settlement

3M announced on Tuesday that it will pay a maximum of $7.35 billion to resolve lawsuits involving groundwater contamination. The agreement covers claims from individuals who say they were harmed by exposure to per- and polyfluoroalkyl substances, commonly referred to as PFAS.

The company plans to distribute the funds over nine years to as many as 120,000 plaintiffs. These individuals allege that the chemicals, which are used in firefighting foam and consumer products, contaminated water sources near military bases, airports, and other fire response locations. 3M stated that it is not admitting liability as part of the deal.

Payments under the settlement are structured to begin immediately. The company will release $50 million this year, followed by annual payments exceeding $1 billion from 2028 through 2033. If a sufficient number of plaintiffs participate, 3M may make additional payments. Conversely, if participation is too low, the company retains the right to cancel the agreement and continue litigation.

William Brown, the chairman of 3M, described the arrangement as a milestone that reduces uncertainty for the firm. The chemical manufacturer has previously settled other PFAS-related disputes, including a $450 million agreement with New Jersey regarding natural resource contamination. 3M also reached a separate deal to pay more than $10 billion to public drinking water systems across the United States.

Fred Thompson, an attorney with the Motley Rice law firm who helped negotiate the deal for the plaintiffs, said the settlement offers welcome relief for thousands of victims seeking accountability. Thompson noted in a release that plaintiffs are facing rising medical bills and other costs that require urgent financial assistance.

PFAS compounds are often called forever chemicals because they do not break down naturally in the environment. Health links to these substances include liver damage, immune system issues, and certain cancers. The compounds are also found in nonstick cookware and water-resistant clothing. Other manufacturers, such as DuPont de Nemours Inc. and its spinoffs Chemours Co. and Corteva Inc., have agreed to settlements totaling over $1 billion for similar claims.

The Environmental Protection Agency has established strict limits on PFAS in public drinking water and requires regular testing, though these rules do not extend to private wells. A study intended to help federal regulators identify which industries discharge PFAS in wastewater has been stalled for two years while awaiting review by the White House Office of Management and Budget. Environmental activists argue that manufacturers knew about the health risks of these persistent chemicals long before they were widely recognized.