3M to Pay $7.35 Billion in PFAS Groundwater Settlement

3M will distribute up to $7.35 billion to settle lawsuits involving groundwater contamination from per- and polyfluoroalkyl substances, commonly known as PFAS. The St. Paul, Minnesota-based chemical manufacturer announced the agreement on Tuesday, which covers claims from individuals who allege they were sickened by exposure to compounds found in firefighting foam and consumer goods.

The settlement will be paid over nine years to as many as 120,000 people. These individuals claim that PFAS contaminated groundwater near military bases, airports, and other sites where the foam was used to extinguish fires. Under the terms of the deal, 3M did not admit liability for the contamination.

Payouts will begin with $50 million this year, followed by annual payments of more than $1 billion each year from 2028 through 2033. The total amount may increase if enough plaintiffs participate in the program. If too few individuals sign on, 3M has the option to cancel the settlement and continue fighting the lawsuit in court.

William Brown, chairman of 3M, described the agreement as a major milestone that reduces uncertainty surrounding the litigation. The company has previously reached other PFAS-related settlements, including a $450 million deal with the state of New Jersey for natural resource contamination and an agreement to pay more than $10 billion to U.S. public drinking water systems.

Fred Thompson, an attorney with the Motley Rice law firm who helped negotiate the settlement for the plaintiffs, called the news welcome for the thousands of victims who have sought answers for nearly a decade. He noted that the plaintiffs urgently need help covering mounting medical bills and other costs associated with their health issues.

Other manufacturers, including DuPont de Nemours Inc., Chemours Co., and Corteva Inc., have agreed to settlements totaling more than $1 billion to resolve PFAS claims. Environmental activists argue that PFAS manufacturers knew about the health risks of these chemicals long before they became public. They point out that the same resistance to breakdown that makes the chemicals valuable in products also makes them hazardous to people.

The EPA has set strict limits on PFAS in drinking water from public utilities and requires testing, but those rules do not apply to private wells. A study intended to help federal regulators understand which industries dump the chemicals with their wastewater has been stalled for two years, awaiting review by the White House Office of Management and Budget.