Chemicals companies and other manufacturers of so-called toxic “forever chemicals,” 3M (MMM), Corteva (CTVA), and DuPont (DD), were granted a remarkable win by the U.S. appeals Court. The 6th U.S. Circuit Court of Appeals rejected a lower court’s approval of a class action lawsuit that would have allowed 11.8 million Ohio residents to sue the companies.
One of the reasons for rejecting the lower court’s ruling was that the Court found the case, filed by lead plaintiff Kevin Hardwick, “too broad,” deeming it overly ambitious. The Court stated that the plaintiff was unable to show that PFAS (per- and polyfluoroalkyl substances) found in his body could be traced to the defendants.
PFAS chemicals are widely used in a range of products, from non-stick pans to clothing, and have been observed to cause cancer and other diseases.
The 6th Circuit Court of Appeals instructed the lower court to dismiss the case. There are many other lawsuits that have been filed against companies for PFAS contamination. In fact, the U.S. Environmental Protection Agency (EPA) considers PFAS an urgent health and environmental issue and has taken regulatory steps to regulate it, including in drinking water.
3M was pleased with the higher Court’s ruling regarding this lawsuit.
What is the Future of 3M Stock?
Analysts remain sidelined about 3M stock, with a Hold consensus rating based on 11 Holds and two Sells. Year-to-date, MMM stock has declined by more than 15% and the average MMM price target of $107.31 implies an upside potential of 10.5% at current levels.