New York Attorney General Letitia James announced on Tuesday that 3M Co. has agreed to make “significant changes” to the proposed settlement amount of $10.5 billion to $12.5 billion. The settlement is related to the company’s involvement in the contamination of drinking water with per- and polyfluoroalkyl substances (PFAS), commonly known as “forever chemicals.”
The previous settlement agreement had included a requirement stating that water providers would be responsible for future liability, placing the burden on taxpayers to cover damages caused by pollution. However, this provision has been completely removed, ensuring that water systems will not be held liable for damages beyond what is covered by the settlement.
According to the statement released by the NY AG, removing the uncapped indemnity in favor of 3M significantly increases the value of the settlement for participating water systems. This new development has led to a positive response from investors, as 3M’s stock rose by 2.5% during morning trading.
In a separate matter, 3M had previously announced its agreement to pay up to $6 billion to settle claims related to faulty Combat Arms earplugs sold to the U.S. military.
While 3M has experienced an 11.0% decline in its stock value year-to-date, the Dow Jones Industrial Average has seen a gain of 4.5%.
