Australia Sues 3M Over PFAS, Stock Drops 2.2%
Australian Government Sues 3M Over PFAS 'Forever Chemicals'
The Australian government has filed a lawsuit against 3M seeking $1.4 billion in damages related to PFAS chemicals used in firefighting foam at defense bases. 3M shares fell 2.2% to $151.75 on Thursday.
3M Responds: No PFAS Manufacturing in Australia
3M stated it never manufactured PFAS in Australia and stopped selling the products in question about two decades ago. The company noted that the Department of Defense continued using PFAS-containing foams for nearly 20 more years.
Impact of PFAS Lawsuits on 3M
PFAS are chemicals found in water supplies linked to health issues. In 2023, 3M agreed to pay approximately $10 billion to water suppliers for remediation. Barclays analyst Julian Mitchell estimates an additional $10 billion in health-related PFAS liabilities, but considers it manageable given 3M's $80 billion market cap and strong free cash flow.
Wall Street's concerns over PFAS have eased. Three years ago, no analysts rated 3M a Buy; now 50% do. The average price target is $178.
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