3M (MMM) entered into an agreement on November 3, 2026, to resolve most personal injury claims linked to per- and polyfluoroalkyl substances (PFAS), the focus of the multidistrict litigation over aqueous film-forming foam (AFFF MDL) in federal court in South Carolina. The company will pay a total nominal amount of $7.35 billion between 2026 and 2034, with a present value of $5.8 billion. As a result, it will record a pre-tax charge of about $5.8 billion in the fourth quarter of 2026.
The settlement covers about 99% of current personal injury claims, inside and outside the AFFF MDL, with approximately 115,000 to 120,000 eligible plaintiffs. The actual amount, terms and payment dates depend on minimum plaintiff participation targets. To participate, each plaintiff must enroll and provide a full release of any PFAS-related personal injury claim and other related claims.
The schedule calls for a $50 million payment in 2026 and none in 2027, with about 20% of the amounts owed in the last two years. The settlement includes a $680 million reserve fund for remaining and future claims. 3M does not admit liability or wrongdoing and says that, if certain terms are not met, it is prepared to continue defending itself in court.
The company said the charge will be treated as a special item in adjusted results (non-GAAP, which exclude items the company considers non-recurring) and does not change the 2026 guidance already disclosed. Chairman and CEO William Brown said: "This settlement is a significant milestone for 3M and substantially reduces uncertainty around the litigation." 3M will hold a conference call with investors on November 4, 2026.
