About 115,000 to 120,000 people who say PFAS exposure made them ill are eligible to join a settlement under which 3M has agreed to pay up to $7.35 billion.
The lawsuits allege that firefighting foam contaminated groundwater near military installations, airports and other sites where it was used. Plaintiffs attribute ulcerative colitis, thyroid disease and cancers of the kidney and testes to the chemicals.
3M, based in St. Paul, Minnesota, announced the agreement on Tuesday. The chemicals are known as “forever chemicals” because they do not break down naturally in the environment.
The company said it will pay the settlement over nine years. It is due to pay $50 million in 2026, followed by no payment in 2027, before annual instalments topping $1 billion between 2028 and 2033.
The $7.35 billion figure is nominal. Its present value is $5.8 billion, and 3M plans to take a pre-tax charge of $5.8 billion in the fourth quarter of 2026.
The agreement covers about 99% of current personal injury claims, including claims inside and outside the federal multidistrict litigation over firefighting foam in South Carolina. Claimants who take part must enrol and give 3M a full release from PFAS-related personal injury claims and certain other related claims.
A $680 million reserve fund for remaining and future claims forms part of the total commitment. The deal also provides for further payments if enough plaintiffs participate. If too few enrol, 3M can cancel the agreement and continue contesting the lawsuit.
William Brown, 3M’s chairman and chief executive, called the agreement a “significant milestone” that substantially reduces uncertainty from the litigation. The company said the settlement is not an admission of liability.
Fred Thompson, an attorney at Motley Rice representing plaintiffs, called it welcome news for “the thousands of victims who have sought answers and accountability for nearly a decade.”
3M said in 2000 that it would phase out PFAS compounds. It said it had stopped manufacturing all PFAS globally by the end of 2025.
The company had already agreed to pay more than $10 billion to many US public drinking water systems. Its shares gained 1.7% late in Tuesday’s session after the settlement announcement.
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