3M Stock (NYSE:MMM)
3M stock increased by more than ten percent on Friday morning after Bloomberg News reported that 3M (NYSE:MMM) has reached a provisional settlement of at least ten billion dollars with a variety of cities and towns in the United States to address water pollution allegations related to “forever chemicals.”
According to Bloomberg News, those familiar with the negotiations said board approval is necessary for the potential arrangement.
An expert believes that the total amount, estimated to be over $10 billion, may go up if some claimants seek further compensation for purported losses.
According to an analyst working for Bloomberg Intelligence named Holly Froum, “3M’s (MMM) proposed deal to resolve water authority cases for at least $10 billion is lower than we expected as we estimated the low-end natural resources damages would be around $25 billion,” the quote comes from an article on the matter. “We do not believe this will be the ultimate cost since there is still the possibility of holdouts adding to the sum. The corporation might be liable for cleanup and other related expenses, costing between $20 and $25 billion.
It was the same day that DuPont de Nemours (DD), Chemours (CC), and DuPont subsidiary Corteva (CTVA) announced a $1.185 billion settlement to resolve environmental claims relating to per-and polyfluoroalkyl chemicals, or PFAS. The 3M stock agreement announcement came the same day. Because they do not break down quickly in the environment or the tissues of animals, they are often referred to as “forever chemicals.”
The payments are only a small element of a much larger potential liability that PFAS manufacturers are up against.
According to Bloomberg News, citing individuals familiar with the situation, the largest manufacturer of PFAS, 3M (MMM), explores the compromise as the firm prepares for its first federal court trial over the chemicals on June 5 in Charleston, South Carolina. The trial will focus on the business’s use of the chemicals.
In addition to personal injury claims and other litigation, the financial research company CreditSights predicted that 3M (MMM) might face statewide PFAS cleanup expenses of as high as $142.7 billion.
Products, including nonstick Teflon cookware, paints, cleaning supplies, firefighting foam, and food packaging, are all made using PFAS. PFAS are also utilized in the production of firefighting foam.
Featured Image: Freepik