3M Co. struck a tentative settlement of at least $10 billion over water pollution claims tied to “forever chemicals,” according to people familiar with the proposed accord, the largest PFAS pact in the US and one of the biggest mass tort deals ever.
Source: Bloomberg Law
I don't remember which channel I was watching (KARE11?) where they interviewed head of MPCA. When asked if the $850 million settlement with 3M was enough, he said if needed they will go to 3M for more and will use the court system if necessary. Anyone who though the 2018 MN settlement was the end of it might want to think again.
The PFAS train is accelerating - 4 more states filing lawsuits vs 3M just in the last week. I lost track, but it's over 20 states now. The latest settlement talks are with cities and not with the states. If this $10B settlement is finalized, the sharks will taste the blood in the water and even more will join the circle to feast.
$10B? Lol. Minnesota alone estimates it will need $14-28B:
https://www.cbsnews.com/amp/minnesota/news/mpca-study-highlights-staggering-costs-to-remove-pfas-from-minnesota-wastewater-streams/
Multiply that by 50 for all states. Use a fudge factor if the $14-28B range seems like too big of a horse pill to swallow. If it brings you solace, pretend US territories don’t exist (https://legalnewsline.com/stories/523080135-guam-files-pfas-lawsuit-against-3m). Travel aboard Mr. Roger’s trolly to the Neighborhood of Make Believe where 3M the highly regarded PFAS shepherd successfully whines and convinces the EPA not list PFOS and PFOA as Superfund chemicals (https://pfas.3m.com/Proposed_CERCLA_Designation). And enjoy your recently legalized re---r.
It makes no difference really. No matter what MoPo-style financial engineering you try (even exquisitely packaged in a PowerPoint presentation) you wind up at a mind boggling number that still doesn’t include any property damage, personal injury claims. Or anything outside the US, where entire countries are looking for their due. (https://www.reuters.com/business/environment/dutch-government-hold-3m-liable-forever-chemicals-damage-2023-05-23/).
Earplugs are a fa-t in a hurricane in comparison to PFAS.
The end is nigh.
$10 Billion…assuming that’s the final number… is a beginning subset of the claims. It comes nowhere near representing the total potential liability.
HC sales is around $9B. At 3 - 3.5X EBITDA, I estimate IPO might yield about $30B. ParentCo retains 19.9% => $6B. Sell some 30 year bonds, belt tighten a little, reduce CapEx a little ... should be able to pay the $10+B PFAS settlement with little problems. 3M has been selling many assets recently (Food Safety, Wonewok, etc) as well, IMO, in preparation for these settlement.
There goes the AIP for the year. They will tell us we had a one time headwind for the settlement and we will miss our numbers yet again.
There’s a reason all of the c suite and BOD gave themselves 20-30% raises recently. They knew the stock was going nowhere.
$10 billion is a lot of money. 2022 earnings before income tax was around $4 billion, so that's about 2 1/2 years of earnings. The earplug plaintiffs better sharpen their pencils and reach a settlement before PFAS plaintiffs get all the money.
@Dominic
Not likely until both the PFAS and Earplug lawsuits are fully settled, so maybe in 5 years if you're lucky.
Any possibility share price will head back to $130?
$10 Billion for PFAS
$10 Billion for CAE2
How many years of profit is that for settlement??