3M to pay $7.35 billion to settle PFAS injury claims without admitting liability

what happened

Industrial conglomerate 3M said on Tuesday that it will pay nearly $7.35 billion over nine years to resolve personal injury claims linked to PFAS, the so-called forever chemicals. The company did not admit liability and said it is ready to keep defending itself in court.

According to 3M, the deal covers about 99% of current injury claims, both inside and outside the AFFF multi-district litigation. Roughly 115,000 to 120,000 plaintiffs are eligible to take part. The first payment is $50 million in 2026, nothing is due in 2027, and about 20% of the total falls in the final two years.

3M expects a pre-tax charge of $5.8 billion in the fourth quarter, but said the charge would not affect its previously issued forecast.

why it matters

For investors, the key point is the reduction of legal uncertainty that has weighed on 3M for some time. The charge is large, but the company said its forecast stands. DuPont, Corteva and Chemours also face PFAS lawsuits, so the issue could weigh on other chemical producers as well.

market impact

3M: lower legal risk supports the shares, while the fourth-quarter charge does not change the forecast

• ▲3M shares pressure up — litigation uncertainty falls while the company keeps its previously issued forecast

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