3M Co (NYSE:MMM) shares traded higher after it announced that its $10.3 billion settlement with public water suppliers to address synthetic “forever chemicals” known as PFAS in drinking water has received final approval from the US District Court in Charleston, South Carolina.
The settlement will support US public water suppliers to carry out PFAS remediation where these chemicals have been detected at any level.
It comes after thousands of lawsuits were filed against manufacturer 3M which alleged it knew the chemicals in its products could cause health issues.
3M has said its participation in the settlement “is not an admission of liability.”
Payments under the now finalized settlement agreement will begin in the third quarter of 2024 and be made over 13 years, potentially reaching as high as $12.5 billion depending on how many public water systems detect PFAS during testing over the next three years.
“This is yet another important step forward for 3M as we continue to deliver on our priorities,” 3M CEO Mike Roman said in a statement.
“The final approval of this settlement and continued progress toward exiting all PFAS manufacturing by the end of 2025 will further our efforts to reduce risk and uncertainty as we move forward.”
3M shares were up 4.5% at about $93 in the early afternoon on Monday.
Separately, 3M on Monday completed the spinoff of its healthcare business Solventum.
Shares of Solventum, which debuted on the New York Stock Exchange under the ticker symbol “SOLV,” traded down 7.3% at $69.55.
"Both companies are positioned to pursue their respective growth and tailored capital allocation plans, and I am excited to see both companies succeed as they innovate new solutions and create value for their respective stakeholders,” Roman commented.