3M has reached a $7.35 billion settlement agreement to resolve approximately 99% of current PFAS-related personal injury claims inside and outside the Aqueous Film-Forming Foam (AFFF) multidistrict litigation (MDL) in federal court in South Carolina.

The agreement covers approximately 115,000 to 120,000 eligible plaintiffs and establishes mechanisms for managing remaining and future personal injury claims. The company will make a pre-tax nominal commitment of $7.35 billion over nine years, with a present value of $5.8 billion. The payment schedule includes $50 million in 2026, no payments in 2027 and approximately 20% of the total payments in the final two years.

The agreement includes a $680 million reserve fund and payments contingent on plaintiffs joining the resolution. An anticipated MDL court order will establish evidentiary and timing requirements for plaintiffs seeking to pursue future litigation.

The settlement follows 3M’s 2023 agreement with U.S. public water suppliers over PFAS contamination claims and a more recent settlement with New Jersey. The company said the latest resolution primarily addresses claims involving PFAS compounds it announced it would voluntarily phase out in 2000.

3M said it will record a $5.8 billion pre-tax charge in the fourth quarter of 2026. The agreement is not an admission of liability, and the company said it will continue to defend itself in litigation if certain settlement terms are not fulfilled. 3M also said it will continue PFAS remediation at sites where it historically manufactured the compounds.