ST PAUL, Minn. — 3M has agreed to pay more than $10 billion to several public water systems around the country to resolve pollution claims related to PFAS or "forever chemicals."
According to a release from the company, a total of $10.3 billion will be provided to cities, towns, and other public water systems over a 13-year period.
"This is an important step forward for 3M, which builds on our actions that include our announced exit of PFOA and PFOS manufacturing more than 20 years ago," said 3M chairman and CEO Mike Roman, in a statement.
The settlement comes after lawyers for cities and towns around the nation sued 3M over PFAS contamination. In one-high profile case, the city of Stuart, Florida, has alleged that 3M foam products used in fire department training exercises may have contaminated the city's drinking water.
Roman added that the company will stop all PFAS manufacturing by the end of 2025.
The Maplewood-based company is facing thousands of lawsuits over PFAS contamination, according to CNBC.
"We don't know how many cities and towns are going to file claims. But you can be rest assured -- it's going to be a lot. Thousands," said David Larson, an expert in employment law at Mitchell Hamline School of Law. "This will take care of that liability exposure. But there's going to be more."
3M settled with the state of Minnesota for $850 million over the company's production of PFAS, or per- and poly-fluoroalkyl substances, that had damaged the drinking water in the Twin Cities metro.
3M, one of the largest Fortune 500 employers in Minnesota, will make payments in this settlement in 2036. This year, the company already announced thousands of layoffs and its stock price has tumbled.
"3M's stock has fallen something like 18 percent since the start of the year. So, I think that's a sign the financial markets, the investors, and the public and so forth have kind of anticipated this result and it's been baked into the price," said Dave Vang, a finance professor at the University of St. Thomas. "They have in the past been laying off some employees and so forth and doing some downsizing, I think in anticipation of having these kind of expenses going forward. I don't anticipate too many more layoffs."
The health impacts of PFAS exposure are still being studied around the world. According to a Minnesota Department of Health summary, prolonged "forever chemical" exposure has been linked to liver and thyroid ailments, immune response suppression and development issues in children.
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