3M today announced that on Friday, March 29, the company's previously announced settlement agreement with U.S. public water suppliers (PWS) received final approval from the U.S. District Court in Charleston, South Carolina.
The now-finalized agreement will support PWS that detect PFAS at any level or may do so in the future and will benefit U.S.-based PWS that provide drinking water to Americans across the country. The agreement received overwhelming support and participation from U.S. PWS, and the court resolved the small number of objections that were raised in favor of the settlement.
"This is yet another important step forward for 3M as we continue to deliver on our priorities. The final approval of this settlement and continued progress toward exiting all PFAS manufacturing by the end of 2025 will further our efforts to reduce risk and uncertainty as we move forward," said 3M chairman and CEO Mike Roman.
As previously disclosed, 3M recorded an accrual of $10.3 billion for this matter, which reflects the pre-tax present value of the expected payments over 13 years under the agreement. Payments under the agreement are scheduled to begin in the third quarter of 2024, provided there are no pending appeals of the final approval order. 3M also continues to actively engage in insurance recovery activities.
The table below sets forth the expected pre-tax payments that 3M would make assuming the nominal $12.5B settlement cap is reached.
