New Jersey wins approval for $2.5 billion chemical settlement with DuPont, 3M and others

• DuPont, Chemours, and Corteva must pay $875 million over 25 years, clean up four former industrial sites, create a $1.2 billion remediation fund, and establish a $475 million reserve to ensure cleanup completion even if companies go bankrupt
• 3M will pay $400-450 million over 25 years to settle drinking water contamination claims and stated it exited all PFAS manufacturing last year
• PFAS 'forever chemicals' are linked to serious health effects including higher cholesterol, low birth weight, reduced vaccine antibody response, and kidney and testicular cancer; the companies still face other PFAS litigation including a lawsuit filed by New York's attorney general

New Jersey PFAS Settlement with DuPont, 3M Approved for $2.5 Billion

A federal judge approved over $2.5 billion in settlements between New Jersey and major chemical manufacturers—DuPont, Chemours, Corteva, and 3M—to resolve pollution claims related to PFAS "forever chemicals."

Key Settlement Terms:

• DuPont defendants (DuPont, Chemours, Corteva): $875 million paid over 25 years for natural resources damages, plus establishment of a $1.2 billion remediation fund and cleanup of four former industrial sites
• 3M: $400-450 million over 25 years for drinking water contamination claims
• Additional provision: DuPont and Corteva will create a $475 million reserve to ensure site cleanup completion even in bankruptcy scenarios

Chief Judge Renee Marie Bumb called the settlement an "impressive windfall" for New Jersey, deeming it fair, reasonable, and serving the public interest despite litigation risks. The judge overruled objections from Carneys Point Township and Sayreville Borough, which claimed individual municipalities should control their own claims.

Background on PFAS:

Per- and polyfluoroalkyl substances (PFAS) are synthetic chemicals found in hundreds of consumer products including cosmetics, non-stick cookware, and stain-resistant fabrics. Termed "forever chemicals" due to their persistence in the environment and human body, PFAS have been linked to serious health issues including kidney and testicular cancer, high cholesterol, low birth weight, and reduced vaccine antibody response.

Market Implications:

The companies face additional PFAS litigation nationwide, including a recent lawsuit filed by New York Attorney General. 3M noted it ceased all PFAS manufacturing in 2023. Chemours and Corteva are DuPont spinoffs, indicating continued legacy liability exposure for all entities.