3M Agrees to PFAS Injury Settlement of Up to $7.35 Billion

3M’s proposed PFAS settlement would resolve about 99 percent of the company’s current personal injury claims tied to the chemicals, while leaving a long payment schedule and continued cleanup work ahead. The agreement, reached Nov. 3 in federal multidistrict litigation in South Carolina, could pay up to $7.35 billion to an estimated 115,000 to 120,000 eligible plaintiffs.

Payments depend on participation and timing

The company values the payments at $5.8 billion in present-day terms and expects to record that amount as a pretax charge in the fourth quarter. 3M plans to exclude the charge from adjusted results and said its 2026 guidance is unchanged.

The filed schedule calls for an initial $50 million payment within 30 days to cover reasonable administrative costs. The main settlement amount is $6.27 billion, paid in six annual installments of $1.045 billion through 2033. Those installments can start only once both sides waive their termination rights or those rights expire; the first is due no earlier than Jan. 15, 2028. No payment is scheduled for 2027.

The $7.35 billion ceiling also includes $250 million tied to higher participation, $100 million contingent on the future litigation docket and a reserve of up to $680 million. The final reserve payment could be made in 2034. The schedule covers 3M’s funding obligations, but doesn’t say when individual claimants would receive money.

3M can end the agreement if participation falls below thresholds set out in a confidential exhibit, which also contains other payment conditions. The deal does not admit liability or wrongdoing.

Eligibility is limited to six conditions

The agreement names kidney, testicular, liver and thyroid cancers, ulcerative colitis and thyroid disease as eligible conditions. Meeting those criteria doesn’t guarantee compensation. Claimants who participate must release PFAS-related personal injury claims and certain other related claims against parties covered by the agreement.

“For the thousands of victims who have sought answers and accountability for nearly a decade, 3M’s $7.35 billion settlement is welcome news,” Motley Rice attorneys Fred Thompson and David Hoyle said in a joint statement. They described the outcome as support for people facing medical bills and other costs associated with PFAS exposure. Thompson is liaison counsel for the multidistrict litigation; Hoyle served on the settlement negotiation team.

3M Chairman and CEO William Brown called the agreement “a significant milestone for 3M” that “substantially reduces litigation uncertainty.” The company did not respond to Sourcing Journal’s request for further comment by press time. In a separate statement, Hoyle said the resolution carried forward the work of Motley Rice co-founder Joe Rice, who worked on the settlement until his death.

Manufacturing exit leaves supplier and site questions

PFAS, or per- and polyfluoroalkyl substances, have been used in products including water-repellent clothing and stain-resistant fabrics. Many persist in the environment, earning the nickname “forever chemicals.”

3M said it stopped manufacturing PFAS at the end of 2025. Its third-quarter filing says some lithium-ion batteries, printed circuit boards, seals and gaskets purchased from suppliers still contain the substances. The company cited technical constraints, industry and regulatory requirements, and the time needed for customer transitions and approvals as barriers to replacing those components.

The company also continues treating PFAS residues at sites where it previously manufactured the chemicals. It warned that dismantling, cleaning or repurposing those facilities could bring further costs after asset disposals. Brown told investors on Oct. 20 that 3M had closed 16 manufacturing sites and distribution centers companywide in 2026, with changes planned at 10 more locations over the next 12 months.

3M expects a court order to set evidence and timing requirements for plaintiffs who pursue future litigation. The settlement may narrow the company’s current claims substantially, but supplier components and former manufacturing sites keep PFAS management on its operating agenda.