Agreement includes present value commitment of up to $10.3 billion payable over 13 years

Provides funding for public water suppliers (PWS) nationwide that have detected PFAS in drinking water, as well as for eligible PWS that may detect PFAS at any level in the future

3M (NYSE: MMM) has entered into a broad class resolution to support PFAS remediation for public water suppliers (PWS) that detect PFAS at any level or may do so in the future. This agreement will benefit U.S.-based PWS nationwide that provide drinking water to a vast majority of Americans. Subject to court approval, the agreement:

Provides funding for PWS across the country for PFAS treatment technologies without the need for further litigation.
Provides funding for eligible PWS that may detect PFAS in the future.
Resolves current and future drinking water claims by PWS related to PFOA, PFOS, and all other PFAS, including those that are included as a portion of the Aqueous Film Forming Foam (AFFF) multi-district litigation based in Charleston, South Carolina.
Provides funding for PWS nationwide to conduct testing for PFAS.

"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.

Financial Considerations
Under the terms of the settlement, 3M has agreed to contribute up to a present value of $10.3 billion, payable over 13 years.

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 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.
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