Scotch tape maker 3M Co (NYSE:MMM) has coughed up US$850mln to settle a lawsuit taken out against it by the State of Minnesota.
The state alleged that perfluorinated chemicals (PFCs) used in the composition of Scotchgard got into Minnesota's drinking water.
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Under the terms of the settlement, 3M will provide an US$850mln grant to the State for a special “3M Grant for Water Quality and Sustainability Fund.” This fund will enable projects that support water sustainability in the Twin Cities East Metro region, such as continued delivery of water to residents and enhancing groundwater recharge to support sustainable growth.
The projects will also result in habitat and recreation improvements, such as fishing piers, trails, and open space preservation.
3M – once known as the Minnesota Mining and Manufacturing Company – said the settlement is consistent with its long history of environmental stewardship.
“We are proud of our record of environmental stewardship, and while we do not believe there is a PFC-related public health issue, 3M will work with the state on these important projects,” said John Banovetz, senior vice president of 3M Research & Development.
The shares were up 66 US cents at US$235.73 in early deals on Wednesday.