3M will start paying out its $12.5 billion “forever chemicals” settlement with public water systems later this year after a federal judge gave final approval to the deal last week.
The settlement, announced last summer, will pay drinking water providers around the country for PFAS remediation over the next 12 years.
3M pioneered the use of per- and polyfluoroalkyl substances 70 years ago, but is now reckoning with their environmental and health costs.
CEO Mike Roman, using an oft-repeated phrase when announcing the court’s approval on Monday, said the settlement will “reduce risk and uncertainty.”
“This is yet another important step forward for 3M as we continue to deliver on our priorities,” Roman said in a statement.
3M is also discontinuing its PFAS production and sales by the end of 2025. The water systems settlement does not end all pending PFAS litigation against the company, and analysts have floated billions more in potential payouts in the coming years.
Payments are expected to begin this fall and will continue through 2036. The bulk of the payments will be made by 2028, according to 3M.
3M’s stock price rose 6%, when adjusting for the impact of the health care spinoff, to close at $94.02 on Monday. The Maplewood-based company has recast its historical stock prices to reflect a company without a health care division in order to make reasonable comparisons going forward.
