The litigation centres on allegations that PFAS-containing firefighting foam contaminated groundwater near military bases, airports and other facilities where the foam was used to extinguish liquid-fuel fires. Credit: Jana Shea, stock.adobe.com
3M has reached a US$7.35-billion settlement agreement to resolve approximately 115,000 to 120,000 personal injury claims related to exposure to per- and polyfluoroalkyl substances (PFAS) in aqueous film-forming foam (AFFF) used to fight fuel fires, marking another major development in U.S. litigation involving the persistent chemicals.
Announced November 3, the agreement addresses approximately 99% of the company’s current PFAS-related personal injury claims, both within and outside a federal multidistrict litigation proceeding in South Carolina involving AFFF.
The litigation centres on allegations that PFAS-containing firefighting foam contaminated groundwater near military bases, airports and other facilities where the foam was used to extinguish liquid-fuel fires. Plaintiffs allege that exposure to the chemicals caused serious health problems and other damages.
“For the thousands of victims who have sought answers and accountability for nearly a decade, 3M’s $7.35 billion settlement is welcome news,” said Fred Thompson, an attorney with Motley Rice who serves as liaison counsel in the multidistrict litigation.
Under the agreement, 3M will commit US$7.35 billion before taxes over nine years, representing a present value of approximately $5.8 billion. The payment schedule includes US$50 million in 2026, no payments in 2027 and approximately 20% of the total commitment in the final two years.
The settlement also establishes mechanisms to address remaining and future personal injury claims. These include a US$680-million reserve fund within the overall settlement amount, payments contingent on plaintiffs participating in the agreement and anticipated court requirements governing evidence and timelines for future litigation.
“We commend MDL No. 2873’s leadership for achieving this favorable result for victims who are in urgent need of support to cover the mounting medical bills and other costs frequently associated with toxic PFAS exposure,” Thompson added.
3M Chairman and CEO William Brown described the agreement as a significant step toward resolving the company’s longstanding PFAS liabilities.
“This settlement is a significant milestone for 3M and substantially reduces litigation uncertainty,” Brown announced in a statement. “Following our 2023 resolution with U.S. public water suppliers and our more recent settlement with the State of New Jersey, this is another important step in managing legacy PFAS matters.”
The agreement follows 3M’s US$10.3-billion settlement with U.S. public drinking water suppliers in 2023, which addressed claims involving PFAS contamination of drinking water systems.
According to 3M, the personal injury claims covered by the latest agreement primarily involve PFAS compounds the company announced it would voluntarily phase out in 2000. The company subsequently committed in 2022 to ending all PFAS manufacturing worldwide by the end of 2025, a goal it says it has achieved.
3M said it has also invested in advanced water treatment technologies at former PFAS manufacturing sites and will continue remediation efforts at those locations.
The company emphasized that the settlement does not constitute an admission of liability. It also indicated that it is prepared to continue defending itself in court if certain conditions of the agreement are not met.