3M to pay more than $US7b to settle groundwater contamination lawsuit

Chemical manufacturer 3M will pay up to $US7.35 billion to settle lawsuits by people who say they were sickened by groundwater contamination from compounds used in firefighting foam and other consumer products.

The St Paul, Minnesota-based company announced the settlement on Tuesday, local time. 

It will pay the money over nine years to as many as 120,000 people who say they were harmed by exposure to per- and polyfluoroalkyl substances, known collectively as PFAS. 

The chemicals contaminated groundwater near military bases, airports and other locations where the foam was used to extinguish fires.

3M did not admit liability for the contamination under the agreement.

Called "forever chemicals" because they do not degrade naturally in the environment, PFAS have been linked to health problems including liver and immune system damage and some cancers. 

The chemicals are also used in non-stick and water- and grease-resistant products, including clothing and cookware.

3M chairman William Brown called the settlement a significant milestone that substantially reduced uncertainty from the litigation. 

The company previously reached settlements in other PFAS-related lawsuits, including a $US450 million agreement with the state of New Jersey to settle claims of natural resource contamination, and a deal to pay more than $US10 billion to many US public drinking water systems.

Other manufacturers, including DuPont de Nemours Inc and spinoffs Chemours Co and Corteva Inc have agreed to settlements totalling more than $US1 billion to resolve PFAS claims.

'Welcome news'

Fred Thompson, an attorney with the Motley Rice law firm that helped negotiate the 3M settlement for the plaintiffs, called it welcome news for "the thousands of victims who have sought answers and accountability for nearly a decade".

He said in a news release that the plaintiffs urgently needed help covering mounting medical bills and other costs.

Under the terms of the settlement, the payouts will begin with $US50 million this year, followed by yearly payments of more than $US1 billion each year from 2028 to 2033.

3M could make additional payments if enough plaintiffs participate. 

If too few sign on, 3M has the option to cancel the settlement and continue fighting the lawsuit.

Environmental activists said PFAS manufacturers knew about the chemicals' health risks long before they became public. 

They noted that the same attributes that made the chemicals so valuable in many uses — resistance to breakdown — also made them hazardous to people.

The Environmental Protection Agency has set strict limits on PFAS in drinking water from public utilities and requires testing, but those rules do not apply to private wells.

A study that would help federal regulators understand which industries dump the forever chemicals with their wastewater has been stalled for two years, awaiting review by the White House Office of Management and Budget.