3M PFAS Water Contamination Settlement Results in $450M Payout to New Jersey

Agreement would require the manufacturer to fund PFAS cleanup efforts over the next decade, with at least $60 million due the first year.

3M Company has agreed to pay the state of New Jersey up to $450 million to resolve claims that it contaminated drinking water in the state with toxic per- and polyfluoroalkyl substances (PFAS), which are toxic chemicals widely used in firefighting foam and other products in recent decades.

New Jersey Attorney General Matthew Plotkin issued a press release on May 13, announcing the state had cut a deal that resolves a PFAS water contamination lawsuit filed by the state in 2019. However, the settlement is still subject to public approval, meaning there will be a public comment period before being finalized.

PFAS chemicals were first introduced into the manufacturing industry in the 1940s, and have been termed “forever chemicals” due to the length of time it takes for them to degrade in the natural environment. Given their ability to resist heat, grease, stains and water, they are used in the production of a number of products, including food packaging, fabrics, non-stick cooking surfaces and more, but they are most commonly known for their use in a type of firefighting foam known as aqueous film-forming foam (AFFF), which is used by civilian and military firefighters against petroleum-based fires.

As a result of run-off from use of the firefighting foam, a number of communities have been left with devastating PFAS water contamination problems, especially near military bases, airports and firefighter training locations.

There is now a growing body of medical research that links exposure to PFAS chemicals to a myriad of adverse health effects, including liver damage, thyroid disease, decreased fertility, high cholesterol, obesity, hormone suppression and cancer.

As a result of the failure to warn about the run-off risks and health side effects, 3M and other chemical companies now face thousands of PFAS water contamination lawsuits brought state governments, local water suppliers and individuals who say they developed cancer and other adverse conditions from PFAS exposure.

This latest settlement comes days before 3M was set to go to trial on May 19, over claims its activities and products heavily contaminated the state’s water supply. The agreement means 3M will not stand trial as planned.

The trial is scheduled to move forward involving claims against other alleged polluters, including EIDP, Inc. (formerly known as E.I. DuPont de Nemours and Co.), The Chemours Company, and other DuPont subsidiaries.

“For decades, 3M knew that their PFAS chemicals were forever contaminating the New Jersey environment. But they continued to pollute the environment and escape accountability. That ends now,” Plotkin said in the press release. “New Jersey has some of the highest levels of PFAS in the country. That’s why New Jersey has been leading the national charge against corporate polluters who contaminate our drinking water and harm our state’s communities.”

The agreement includes payments of between $275 million and $325 million from 2026 to 2034. 3M will also pay $43,450,000 in the first year for Natural Resource Damages and $16,550,000 for PFAS abatement projects, including drinking water treatment. The company will pay another $40 million in fees and punitive damages.

The settlement does not affect lawsuits filed by individual plaintiffs.

EPA Delays PFAS Reporting Requirements

The settlement agreement comes as the U.S. Environmental Protection Agency (EPA) has agreed to give the chemical industry more time to meet the requirements of a PFAS reporting rule finalized in October 2023. The rule called for PFAS manufacturers to turn over certain data on environmental and health effects caused by exposure, covering a period from 2011 to 2022.

The revised deadlines were published in the Federal Register (PDF) on May 13, and give manufacturers from April 13, 2026 to October 13, 2026 to turn over the data. Previously, the submissions were set to start on July 11, 2025.

The FDA is accepting public comment on the extended deadline until June 12, 2025. Comments can be submitted online at https://www.regulations.gov using docket identification number EPA–HQ–OPPT–2020–0549.

PFAS Exposure Lawsuits

In addition to claims by cities, states and drinking water systems, more than 9,300 AFFF lawsuits are now being pursued by former firefighters and individuals living in areas where the foam contaminated drinking water supplies.

Given common questions of fact and law presented in the claims brought throughout the federal court system, the cases are currently centralized in the District of South Carolina as part of an AFFF lawsuit MDL, where U.S. District Judge Richard M. Gergel has been presiding over coordinated discovery and pretrial proceedings.

Previously the pretrial proceedings in the MDL were focused on claims brought by a number of local water suppliers, who were left with the costs associated with removing the toxic chemicals from U.S. water sources. However, in June 2023, 3M Company agreed to pay over $12.5 billion in an AFFF water contamination settlement to resolve those water provider claims.

The court is now moving forward with preparing a group of AFFF firefighter and water contamination lawsuits for trial, since there have not been any reported AFFF lawsuit settlements for personal injury lawsuits.

While the outcome of these early bellwether trials will not have any binding impact on other claims, it is expected that the amount of any AFFF lawsuit payout awarded by juries may influence future cancer settlement negotiations to resolve the litigation.