Potential 'Forever Chemicals' settlement boosts 3M stock

Key takeaways

  • 3M shares jumped following a settlement report over allegations of water pollution by 'forever chemicals'.
  • The $10 billion+ deal could save 3M from trial in South Carolina.
  • DuPont, Chemours and Corteva have announced a similar agreement.

3M (MMM) shares surged on a report that the conglomerate has reached a tentative agreement in a lawsuit over water pollution caused by the so-called “eternal chemicals”.

Bloomberg reported that the settlement would be for at least $10 billion and could save the company from having to go to trial in a federal court case that is expected to begin in South Carolina next week.

Plaintiffs sued 3M for the effects of per- and polyfluoroalkyl substances, or PFAS, known as “eternal chemicals” because they take a long time to break down. 3M is the largest manufacturer of PFAS, which are used to make coatings and products that are resistant to oil, grease, stains, water and heat.

Friday, DuPont (DD) and spin-offs Chemours (CC) and Corteva (CTVA) said they had agreed to a $1.185 billion PFAS settlement related to DuPont's production of chemicals. 

Report helped increase 3M shares for a second straight day after hitting a more than 10-year low on Wednesday. 3M shares were up 8.6% at 3:30 p.m. ET Friday. Shares of DuPont, Chemours and Corteva also rose.


Source: investopedia.com

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