Forever Chemicals Settlement; No Liability Admitted

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According to the New York Times, chemical giant, 3M, reached a $10.3 billion settlement deal with U.S. cities and towns regarding claims that the company contaminated drinking water with so-called forever chemicals used in everything from firefighting foam to nonstick coatings.

Questions:

  1. Over what period will the payout happen?
  2. How many lawsuits did 3M face regarding these forever chemicals?
  3. What types of journal entries and footnote disclosures do you anticipate impacting the 3M annual report?
  4. What is PFAS? As part of the settlement, when will 3M exit the manufacture of PFAS?
Source: Friedman, L and V. Giang. (2023) 3M Reaches $10.3 Billion Settlement in ‘Forever Chemicals’ Suits, The New York Times, June 22 (Retrievable online at https://www.nytimes.com/2023/06/22/business/3m-settlement-forever-chemicals-lawsuit.html)