PFAS Contamination Spurs Litigation Risk
Manufacturers face heightened regulatory and legal risk from PFAS, or “forever chemicals,” as new contamination sites emerge. In Dudley, Massachusetts, wells near a manufacturing plant have been found to be contaminated, while Dalton, Georgia, has been cited as an epicenter of legacy pollution from the carpet industry.
- In June 2023, 3M agreed to a settlement of up to $12.5 billion to address PFAS contamination in U.S. public water systems, while DuPont and its spinoffs, Chemours and Corteva, settled similar claims for $1.18 billion. These agreements add to previous large settlements, including a 2017 payment of $671 million by DuPont and Chemours to resolve thousands of personal injury lawsuits. - The U.S. Environmental Protection Agency (EPA) established the first-ever national, legally enforceable drinking water standards for six PFAS compounds in April 2024. The standards set the Maximum Contaminant Levels for PFOA and PFOS at 4.0 parts per trillion and also regulate PFNA, PFHxS, PFBS, and GenX chemicals. - Under the Toxic Substances Control Act (TSCA), companies that manufactured or imported PFAS or PFAS-containing articles between 2011 and 2022 are required to report detailed information to the EPA. This one-time reporting rule is intended to create a comprehensive database of PFAS uses, production volumes, and potential exposures. - Litigation is expanding beyond chemical manufacturers to include companies down the supply chain that use PFAS in their finished products. Lawsuits are increasingly targeting companies for consumer fraud, alleging that products marketed as "clean" or "environmentally friendly" contain PFAS. - While there are currently no federal workplace exposure limits for PFAS, OSHA's General Duty Clause requires employers to provide a workplace free from recognized hazards. Some occupations, such as chemical manufacturing workers and firefighters, have been identified as having higher potential for PFAS exposure. - The financial impact of PFAS extends beyond litigation, with estimated annual healthcare costs in the U.S. related to PFAS-linked illnesses ranging from $37 billion to $59 billion. The cost for U.S. wastewater treatment to manage PFAS contamination is projected to exceed $3 billion annually. - Supply chain transparency is a significant challenge for manufacturers, as PFAS may not be listed on Safety Data Sheets if they are not classified as hazardous, are present in low concentrations, or are protected as trade secrets. This lack of visibility creates hidden liabilities, as companies may be unaware of PFAS in their materials. - Several states have moved faster than the federal government in regulating PFAS, creating a complex patchwork of laws. For example, Minnesota has enacted a comprehensive framework that requires the disclosure of intentionally added PFAS in products, followed by a phased ban.
