3M has entered a broad class resolution to support per- and polyfluoroalkyl substances (PFAS) remediation for public water suppliers (PWS) that detect PFAS in drinking water at any level or may do so in the future. This agreement will benefit PWS nationwide that provide drinking water to a vast majority of Americans. Subject to court approval, the agreement includes a present value commitment of up to $10.3 billion payable over 13 years.
This agreement will provide funding for PWS across the country for PFAS treatment technologies without the need for further litigation. It also provides funding for PWS that may detect PFAS in the future as well as funding for PWS to conduct testing for PFAS.
It resolves current and future drinking water claims by PWS related to all PFAS, including those that are included as a portion of the Aqueous Film Forming Foam (AFFF) multi-district litigation based in Charleston, South Carolina.
"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, our more recent investments in state-of-the-art water filtration technology in our chemical manufacturing operations, and our announcement that we will exit all PFAS manufacturing by the end of 2025," said 3M chairman and CEO Mike Roman.
3M expects to record a pre-tax charge of approximately $10.3 billion in the second quarter of 2023 and to reflect it as an adjustment in arriving at results, adjusted for special items. Additional details will be included in 3M's filings with the Securities and Exchange Commission.
The strength and stability of 3M's business model and strong free cash flow capability, together with proven capital markets access, provide financial flexibility to deploy capital to meet its cash flow needs under this agreement and other contractual commitments and obligations.
This agreement is not an admission of liability. If the agreement is not approved by the court or certain agreed terms are not fulfilled, 3M stated that it is prepared to continue to defend itself in the litigation. 3M also will continue to address other PFAS litigation by defending itself in court or through negotiated resolutions, all as appropriate.
To learn more, visit www.3m.com.
To learn more about PFAS, visit www.epa.gov/pfas.