3M Agrees to $7.35 Billion Deal Over ‘Forever Chemical’ Firefighting Foam

3M has agreed to pay up to $7.35 billion to settle personal injury lawsuits from people who say they were harmed by PFAS, the so-called forever chemicals, in firefighting foam the company made. The Minnesota-based manufacturer announced the deal after markets closed on Tuesday and disclosed the terms in a filing with the Securities and Exchange Commission.

The money will be paid over nine years, through 2034. 3M said the agreement covers about 99% of current personal injury claims both inside and outside the federal multidistrict litigation in South Carolina, with roughly 115,000 to 120,000 plaintiffs eligible to take part. The company did not admit liability or wrongdoing.

How the deal works

The settlement is opt-in. People with claims must enroll and give up any PFAS-related personal injury claims against 3M in exchange for a payment. The company said it can walk away if not enough claimants join, but its chief legal officer told investors it does not expect that to happen.

Payments start small. 3M said it will pay $50 million in 2026, nothing in 2027, and about a fifth of the total in the final two years. The deal includes a $680 million reserve for remaining and future claims. In today’s dollars the commitment is worth about $5.8 billion, and 3M will book a pre-tax charge of that size in the fourth quarter. The company said its 2026 guidance does not change.

On Wednesday, the federal judge overseeing the litigation in Charleston, South Carolina, paused personal injury proceedings against 3M so both sides can focus on putting the settlement in place.

What it does not cover

The agreement deals only with personal injury claims. Lawsuits from cities and towns seeking money to test and clean up contaminated public water supplies are a separate part of the litigation and are not resolved by this deal.

Why it matters

PFAS do not break down easily in the body or the environment. The chemicals have been linked to health problems including kidney and testicular cancer. The foam was used for decades at military bases, airports and fire training sites, where it seeped into groundwater.

Investors welcomed the news. 3M shares rose as much as 10% on Wednesday to their highest level since 2018, as the settlement came in below what some analysts had expected and removed a major source of uncertainty for the company.

How we reported this

This report draws on 3M’s company announcement and securities filing and reporting from major news organizations, named below.

Sources: 3M, U.S. Securities and Exchange Commission filing, AP, Reuters, NPR.