Billion-dollar lawsuits: Will non-stick chemicals finally stick on 3M?

3M’s pollution problems in Minnesota appear to be receding. But nationwide, they are rising like the floodwaters of the Mississippi River. An estimated 35 federal bills take aim at 3M Co.’s chemical pollution, and 41 states have complained that it’s in their groundwater. Wall Street analysts have downgraded 3M’s stock, citing potential legal liabilities of up to $6 billion. 3M, they fear, is about to be injured by its own creation. “From a legal standpoint, this is like an octopus — lots of arms, lots of outcomes, lots of issues to decide,” said Nick Heymann, an analyst with the advisory firm William Blair & Co. The chemicals, found in groundwater around the world and millions of consumer products, seem to be in many places. And so does the potential legal liability. “(The chemicals) remain an acute risk with product liability still unquantifiable,” said a July report of RBC Capital Markets, by analyst Deane Dray.
Citing the risk of lawsuits and cleanup costs, RBC in July downgraded the 3M stock — as have other advisory firms.