3M (NYSE:MMM) is on the verge of ending the largest mass tort litigation in U.S. history, but it’s still facing other expensive legal headaches.
The company, manufacturer of Scotch Tape and other goods, said Tuesday that it settled with roughly 250,000 plaintiffs in a $6.01-billion deal. Military veterans and service members alleged 3M manufactured defective earplugs that resulted in hearing loss.
While news of the settlement relieves one big legal overhang, 3M is still awaiting approval of its $10.3 billion settlement with water utilities over drinking water contaminated with substances known as “forever chemicals.”
That settlement, which is facing pushback from more than 20 states, only covers a subset of liabilities and does not include a growing list of states that have sued 3M. Nor does it include personal injury claims.
Capstone estimates 3M’s total PFAS liability risk is nearly $30 billion, beyond the existing settlements.
3M has also faced lawsuits from countries such as the Netherlands and Belgium over PFAS contamination. Europe continues to weigh a decision on whether to ban PFAS chemicals altogether. In the U.S., the Environmental Protection Agency is considering labeling PFAS a hazardous chemical. Experts say that could lead to more testing and a better understanding of just how pervasive the toxic chemical is.
To fund its settlements, 3M has cut costs, including through eliminating 8,500 jobs, or 10% of its workforce, this year.
MMM shares let go of 16 cents to $105.41.
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