3M stock rallies after $10.3 billion ‘forever chemical’ settlement offered

3M Co.
MMM,
-1.02%
shares rallied in the extended session Thursday after the materials and chemicals company said it would pay $10.3 billion to settle claims it was responsible for so-called “forever chemicals” in drinking water. The nickname refers to per- and polyfluoroalkyl substances, or PFAS, a group of a synthetic chemicals that do not easily degrade in the environment. Shares rallied more than 4% after hours, following a 1% decline to close at $100.43. 3M will take a charge for a similar amount in the second quarter. The payments over 13 years are meant to fund PFAS detection and removal efforts in public water supplies, and resolve current and future drinking water claims, the company said. “This agreement is not an admission of liability,” 3M said in a statement. “If the agreement is not approved by the court or certain agreed terms are not fulfilled, 3M is prepared to continue to defend itself in the litigation.” 3M shares are down more than 16% year to date, while the Dow Jones Industrial Average
DJIA,
-0.01%,
of which 3M is a component, is up 2.4%.