Summary
3M Company (MMM) has entered into a significant proposed class-action settlement to resolve drinking water claims related to per- or poly-fluoroalkyl substances (PFAS) from public water systems in the United States. This settlement, if approved by the court, would range from $10.5 billion to $12.5 billion in total payments, to be made annually from 2024 through 2036. The funding is intended to cover treatment technologies for water systems testing positive for PFAS, future testing, and systems that may test positive in the future. While the company does not admit liability, this settlement aims to resolve a substantial portion of its PFAS-related multidistrict litigation concerning public water system drinking water claims.
Key Highlights
- 13M has reached a proposed settlement with US public water systems regarding PFAS-related drinking water claims.
- 2The settlement value is estimated between $10.5 billion and $12.5 billion, to be paid out from 2024 to 2036.
- 3The funds are designated for treatment technologies, future testing, and remediation for affected water systems.
- 43M does not admit liability or wrongdoing as part of the settlement terms.
- 5The settlement is subject to court approval and can be terminated by 3M if too many eligible class members opt out.
- 63M expects to record a pre-tax charge of approximately $10.3 billion in Q2 2023, reflecting the present value of the settlement payments.