3M surges after it resolves claims by public water suppliers in a $10.3 billion deal
3M (NYSE:) shares gained more than 4% in pre-market Friday following the company’s announcement that it has entered into a broad class resolution to support PFAS remediation for public water suppliers (PWS) in the U.S.
This agreement will provide funding for PWS across the country for PFAS treatment technologies, without the need for further litigation. It also includes funding for eligible PWS that may detect PFAS in the future.
The resolution aims to resolve current and future drinking water claims by PWS related to PFOA, PFOS, that are included as a portion of the Aqueous Film Forming Foam (AFFF) multi-district litigation based in Charleston, South Carolina.
Additionally, the agreement provides funding for PWS nationwide to conduct testing for PFAS.
Under the terms of the settlement, 3M has agreed to contribute up to a present value of $10.3 billion over 13 years.
This agreement is not an admission of liability, and if it is not approved by the court or certain agreed terms are not fulfilled, 3M is prepared to continue defending itself in litigation.
Mizuho analysts said the settlement will remove “some uncertainty.”
“We view this as a positive development, largely in line with the ~$10B recently reported by Bloomberg. MMM is still dealing with a litany of other lawsuits, but a path to less uncertainty is underway,” they said in a note.
Additional reporting by Senad Karaahmetovic
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