3M’s $75M PFAS settlement in New Jersey likely to be highest payout: UBS

3M’s (NYSE:MMM) $75 million settlement last month with the state of New Jersey over PFAS contamination may represent one of the most expensive state-level payouts the company will face, as most other states appear to show lower levels of contamination and fewer Superfund-designated sites, according to financial-services firm UBS.

UBS analyst Amit Mehrotra cited data from the bank’s proprietary water contamination tracker, cross-referenced with EPA-designated Superfund locations, to assess the potential scope of 3M’s (NYSE:MMM) liability across the United States.

The findings indicate that New Jersey shows a disproportionately high number of contamination sites where PFOS or PFOA, the two most commonly cited PFAS chemicals, are present in concentrations above 4 parts per trillion, a level associated with regulatory action.

“This analysis supports our view that 3M’s recent $75 million settlement with New Jersey likely represents the upper end of individual state settlements, with the majority of states well below this amount,” Mehrotra wrote in a note to clients on Monday.

PFAS, short for per- and polyfluoroalkyl substances, are a group of synthetic chemicals widely used in industrial and consumer products for their resistance to heat, water and oil.

Often referred to as “forever chemicals,” PFAS do not easily break down in the environment or the human body, and they have been linked to a range of health issues including cancer, liver damage and immune system disruption. Their persistence and widespread use — from firefighting foams to nonstick cookware — have made them a major focus of environmental regulators and litigation in recent years.

3M (MMM), which plans to end manufacturing of PFAS by the end of this year, has faced lawsuits over its historical role in producing and distributing these substances. The company has already committed to a multibillion-dollar nationwide settlement and is working to resolve claims on a state-by-state basis.