3M Agrees to Pay Up to $7.35 Billion Over Nine Years to Settle PFAS Injury Claims

3M said Tuesday, Nov. 3, that it will commit up to $7.35 billion over nine years to settle personal-injury lawsuits tied to PFAS, the so-called forever chemicals found in firefighting foam and consumer products. The company announced the deal on its investor webpage after markets closed.

The company says the agreement addresses about 99% of current personal-injury claims, both inside and outside the federal multidistrict litigation over aqueous film-forming foam (AFFF) in South Carolina. Between 115,000 and 120,000 plaintiffs are eligible to participate, according to 3M.

The settlement does not include an admission of liability. 3M said it remains prepared to defend itself in court.

The money, and when it moves

The $7.35 billion is a nominal figure. 3M puts the present value at roughly $5.8 billion, and it expects to book a $5.8 billion pretax charge in the fourth quarter of 2026. The company said the charge will not change its previously issued forecast.

The schedule is heavily backloaded. 3M will pay $50 million in 2026 and nothing in 2027. Payments of more than $1 billion a year are set to run from 2028 to 2033, and about 20% of the total comes due in the final two years.

The deal also covers claims that have not yet been filed. 3M said all remaining and future personal-injury claims, inside and outside the MDL, will be handled through several settlement mechanisms. Stocktwits reported that $680 million is set aside for additional claims.

Shares of 3M rose more than 1% in overnight trading after the announcement, according to Stocktwits. Regular-session trading had already closed when the news came out.

Walk-away rights

This is not a done deal for every plaintiff. If too few claimants sign on, 3M has the option to cancel the settlement and keep fighting the lawsuits. If enough participate, 3M could owe additional payments.

How many plaintiffs must sign on for the deal to hold is the open question. It decides whether $7.35 billion is a floor, a ceiling, or a number that disappears.

3M chairman and CEO William Brown called the agreement "a significant milestone for 3M" that "substantially reduces litigation uncertainty."

Fred Thompson, an attorney at Motley Rice, which helped negotiate the deal for plaintiffs, called it welcome news for "the thousands of victims who have sought answers and accountability for nearly a decade." He said plaintiffs urgently need help covering mounting medical bills and other costs.

What PFAS is alleged to do

PFAS do not break down naturally, hence the nickname. They have been linked to liver damage, immune system damage, lower birth weight, reduced antibody response to vaccines, and kidney and testicular cancer. They contaminated groundwater near military bases, airports and other sites where the foam was used.

Environmental activists say PFAS manufacturers knew about the health risks long before they became public. They argue that the property that makes the chemicals so useful, resistance to breakdown, is the same one that makes them hazardous to people. 3M's position in this settlement is that it admits no liability.

The company says it has completed its previously announced plan to stop manufacturing PFAS globally by the end of 2025.

Part of a much larger tab

This is the latest in a string of large PFAS payouts by 3M:

• A 2023 settlement with U.S. public water systems that 3M valued at up to $10.3 billion in present value.
• A $450 million agreement with New Jersey over natural resource contamination.
• Separately, DuPont de Nemours, Chemours and Corteva have agreed to settlements totaling more than $1 billion.

The regulatory gap

The settlement sits against a patchy government response. The Environmental Protection Agency has set strict limits on PFAS in drinking water from public utilities and requires testing. Those rules do not apply to private wells.

A study that would help federal regulators identify which industries discharge PFAS in their wastewater has been stalled for two years, awaiting review by the White House Office of Management and Budget. Private litigation, not federal rulemaking, is doing most of the work of assigning costs.

The next concrete marker is 3M's fourth-quarter 2026 earnings, where the $5.8 billion charge will be booked. The sign-up count among the 115,000 to 120,000 eligible plaintiffs will determine whether 3M keeps the deal or exercises its right to walk.