3M Commits $7.35 Billion to Settle ‘Forever Chemicals’ Injury Claims
3M will pay $7.35 billion over nine years to resolve about 99% of PFAS personal injury claims tied to firefighting foam, and it approved a $6 billion buyback.
3M, the Minnesota-based maker of Post-it notes, Scotch tape and industrial materials, has agreed to pay about $7.35 billion over nine years to resolve nearly all pending personal injury claims over so-called “forever chemicals.” It is one of the largest legal settlements in the company’s history. 3M announced the deal after the market closed on Tuesday, Nov. 3, 2026, and said it covers about 99% of current personal injury claims tied to PFAS, a family of chemicals once used in its firefighting foams and many consumer products.
What 3M agreed to
3M said in a statement that the nominal pre-tax cost of the settlement is $7.35 billion, with a present value of $5.8 billion. The company will record a pre-tax charge of $5.8 billion in the fourth quarter of 2026. It said the charge will be treated as a special item and will not change its previously issued 2026 financial guidance.
The agreement centers on the Aqueous Film-Forming Foam Multi-District Litigation, or AFFF MDL. That is a consolidated group of federal lawsuits in South Carolina brought by people who say exposure to PFAS in firefighting foam made them sick. The company said about 115,000 to 120,000 plaintiffs, both inside and outside the MDL, are eligible to take part.
The payments are weighted toward later years, according to the company’s release:
- $50 million is due in 2026.
- No payments are scheduled for 2027.
- About 20% of the total falls in the final two years, ending in 2034.
- A $680 million reserve fund for additional and future claims is included in the overall $7.35 billion.
The company said the schedule was designed to line up with its remaining payments on other legacy settlements. Claimants who enroll must give 3M a full release of their PFAS-related injury claims. Some payments depend on how many plaintiffs join. 3M said the agreement is not an admission of liability, and that it is prepared to keep defending itself in court if certain agreed terms are not met. The company also expects the MDL court to issue an order setting evidence and timing requirements for plaintiffs who choose to keep litigating.
“This settlement is a significant milestone for 3M and substantially reduces litigation uncertainty,” William Brown, 3M’s chairman and chief executive, said in the statement.
Market reaction and buyback
Along with the settlement, 3M’s board approved a new $6 billion share repurchase authorization. That brings the total available for buybacks to $7.5 billion, according to Stocktwits and Proactive. The company also declared a quarterly dividend of $0.78 per share.
Stocktwits reported that 3M shares traded more than 1% higher in overnight trading on Tuesday. It said the stock was up about 10% so far in 2026 and on track for a third straight annual gain.
Analysts at UBS said the settlement “removes a major overhang” on the stock, Proactive reported. UBS estimated that investors had been bracing for a cost of about $10 billion, well above the $5.8 billion present value 3M disclosed. The bank described personal injury claims as the last major unresolved piece of 3M’s PFAS litigation. It also said clearer liabilities could draw a broader group of investors to the shares. Other PFAS matters, including claims from people who opt out of the deal, have not been resolved.
Why PFAS matter
PFAS, short for per- and polyfluoroalkyl substances, are man-made chemicals used to make products resist heat, stains, grease and water. They are called forever chemicals because they break down very slowly in the environment and the human body. Reuters noted that the chemicals have been linked to liver damage, lower birth weight, a weaker immune response to vaccines, and kidney and testicular cancer.
3M faces thousands of lawsuits over PFAS contamination. Other chemical makers, including DuPont, Corteva and Chemours, also face PFAS lawsuits, Reuters reported. 3M said it phased out certain PFAS compounds starting in 2000. In 2022 it pledged to stop making all PFAS worldwide by the end of 2025, and it says it met that goal. The company also says it has invested in water treatment technology at its former PFAS manufacturing sites and will continue cleanup work there.
Background and what comes next
This deal follows a 2023 settlement with U.S. public water systems over drinking water contamination. That agreement did not cover personal injury claims, and sources describe its size differently. Reuters put it at $10.3 billion, while Stocktwits described it as up to $12.5 billion over 13 years. The gap reflects the difference between the deal’s present value and its maximum nominal payout. 3M has also reached a separate settlement with the state of New Jersey over PFAS pollution.
The next step is getting enough eligible plaintiffs to sign up. In its forward-looking statements, 3M warned that it could end the agreement if participation falls below a certain level, but it did not give a number. The company said more details would appear in its filings with the U.S. Securities and Exchange Commission. Executives were scheduled to discuss the agreement with investors on a conference call on Wednesday morning.
