How many multibillion-dollar settlements does 3M Co. need before it can move on from its myriad legal woes? Definitely more than one, and therein lies the problem with owning shares of the maker of Post-it notes, automotive adhesives and N95 masks.
Last week, 3M announced a deal to pay as much as $12.5 billion over 13 years to resolve lawsuits from US cities that contend their drinking water supplies were polluted by per- and polyfluoroalkyl substances (PFAS) made by the company. These substances are known as “forever chemicals” because they break down slowly in the environment and can accumulate in the body and cause health problems. The settlement requires 3M to pay a minimum of $10.5 billion to treat and test water supplies and extends to municipalities that may detect PFAS at any level in the coming years. When the Environmental Protection Agency in March proposed the first national drinking water standards for PFAS, it set the barometer for two of the more problematic compounds at 4 parts per trillion, essentially the lowest level that can be reliably measured. If finalized, the EPA’s proposed regulation will force public water systems to monitor for PFAS and reduce contamination if levels exceed the new standards. The settlement, which 3M says isn’t an admission of liability, essentially means the company will foot that bill for drinking-water utilities.
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