[co-author: Stephanie Kozol]*
On May 13, New Jersey Attorney General (AG) Matthew Platkin announced a proposed $450 million settlement agreement with 3M regarding allegations that, among other issues, contamination of perfluoroalkyl and polyfluoroalkyl substances (PFAS) emanated from a site now owned by 3M. The settlement resolves these claims and New Jersey’s broader claims that the state and its agencies have or may have in the future regarding PFAS. The settlement agreement remains subject to court approval.
Background
Used in commerce for decades, PFAS compounds have drawn closer environmental and public health scrutiny over the past several years, resulting in substantial private litigation and regulatory scrutiny, including by state AGs. Many states have taken the lead in investigating for the presence of PFAS while setting new standards for drinking water and environmental remediation that are more stringent than existing federal guidelines. The U.S. Environmental Protection Agency (EPA) and Congress have accelerated efforts to regulate market entry, use, exposure to, and disposal of these substances, while increasing funding for ecological fate and transport research, risk assessment, and treatment technologies.
In 2019, New Jersey sued 3M and other companies over allegations that PFAS compounds were emanating from the Chambers Works site in Pennsville and Carneys Point, Salem County and the Parlin site in Sayreville, NJ. The litigation had progressed to the eve of trial, which was scheduled to begin on May 19.
Following a period for public comment and court approval, the settlement agreement releases 3M from liability in various lawsuits brought by the state of New Jersey. It requires 3M to continue investigating and remedying all PFAS contamination that stemmed from its former New Jersey locations. 3M will begin payments under the agreement in 2026 and continue to make payments through 2034. In 2026, 3M will pay $43.45 million for natural resources damages at the Chambers Works site and $16.55 million for related PFAS abatement projects. The settlement agreement also includes $40 million in fees, costs, and punitive damages, marking the largest statewide PFAS settlement in New Jersey history. Notably, New Jersey recognized in the proposed settlement that 3M “has taken actions, which other companies have not taken, to cease manufacturing” PFAS — consistent with its announcement that the company will discontinue all PFAS manufacturing by the end of 2025.
Why It Matters
This settlement agreement cannot be seen in a vacuum, and companies faced with substantial litigation exposure must be mindful that early settlements — even when reached on the eve of settlement — send settlement expectations to other companies. The broad scope of the release, which applies not only to the specific contamination from two sites, but also more generally releases New Jersey’s claims, aligns with a company’s goal for global peace.
*Senior Government Relations Manager
