3M Shares Advance After Company Reaches $7.35 Billion PFAS Injury Settlement

3M has agreed to pay $7.35 billion to resolve almost all current lawsuits tied to PFAS-related injuries.

• The settlement will run for nine years and is expected to cover nearly 99% of existing PFAS-related personal injury claims.
• Its pretax present value is about $5.8 billion.
• 3M will make a $50 million payment in 2026, skip 2027, and pay roughly 20% of the total in the final two years.

Shares of 3M (MMM) moved higher in overnight trading after the Post-it maker reached the $7.35 billion PFAS agreement, which could cover as many as 120,000 plaintiffs and remove a large source of legal uncertainty.

The stock was up more than 1% in overnight trading. It remains on pace for a third consecutive annual gain.

3M Reaches $7.35 Billion PFAS Injury Deal

3M said it had agreed to a nine-year settlement worth $7.35 billion to close out a large share of lawsuits claiming personal injuries from per- and polyfluoroalkyl substances, or PFAS, often referred to as forever chemicals. The agreement is intended to settle nearly all current personal injury cases involving the chemicals.

The company said the arrangement has a pretax present value of about $5.8 billion and covers roughly 99% of existing personal injury claims, involving an estimated 115,000 to 120,000 eligible plaintiffs both inside and outside the federal multidistrict litigation in South Carolina.

Payments Set to Start in 2026

3M said the payments will be spread across nine years, beginning with $50 million in 2026 and no payment in 2027. Roughly 20% of the total will be paid during the last two years, in line with its other settlement structures.

The agreement also addresses current and future claims. It allocates $680 million for additional claims and outlines payouts for people who accept the settlement. Those who opt to pursue litigation will need to comply with court rules and deadlines.

"This settlement is a significant milestone for 3M and substantially reduces litigation uncertainty," said Chairman and CEO William Brown.

Latest Agreement Adds to Earlier PFAS Costs

The new settlement follows two earlier PFAS-related deals. In 2023, 3M agreed to pay up to $12.5 billion over 13 years to help U.S. water suppliers deal with drinking water contamination. The company also reached a separate settlement with New Jersey last year.

PFAS are man-made chemicals used in products such as stain-resistant clothing and firefighting foam. They break down slowly and can accumulate in soil and water, which has raised health concerns. 3M began phasing out certain PFAS chemicals in 2000 and said in 2022 that it planned to end production of all PFAS by the close of 2025.

Separately, 3M’s board approved an additional $6 billion for share repurchases, bringing the total available buyback authorization to $7.5 billion, and declared a quarterly dividend of $0.78 per share.

Retail Sentiment on 3M

On Stocktwits, retail sentiment toward the stock remained bullish.

One user wrote, “As legal headwinds recede and manufacturing and trade environments stabilize, better earnings durability and capital returns could be on the horizon.”

3M shares are up 10% year to date.