- 3M (MMM, Financial) has reached a $285 million settlement with New Jersey to address PFAS-related claims.
- The agreement includes commitments of $210 million for legacy claims and $75 million for future claims till 2050.
- 3M plans to halt all PFAS manufacturing by the end of 2025.
3M Company (MMM) has reached a significant settlement with the State of New Jersey, agreeing to a pre-tax commitment of approximately $285 million to address PFAS-related claims. This settlement, which covers both past and potential future claims, aims to resolve legacy issues without the need for further litigation. Importantly, the agreement does not constitute an admission of liability on 3M's part.
The settlement is divided into two key components: a $210 million allocation to resolve claims associated with the historical contamination at the Chambers Works site in Salem County, and an additional $75 million dedicated to address current and future statewide claims from 2030 through 2050. This structured payment plan is designed to provide 3M with predictable cash flow management while aligning with other financial obligations.
3M anticipates recording this settlement as a pre-tax charge of approximately $285 million in its second-quarter financial results for 2025. The company's proactive steps in ceasing PFAS manufacturing—set to be completed by the end of 2025—have been acknowledged by New Jersey, distinguishing 3M from its industry peers. This strategy reflects 3M's ongoing commitment to environmental responsibility and risk mitigation, while also aiming to fortify shareholder value by focusing on sustainable growth and operational excellence.
