The Biggest Product Liability Payouts of 2024

South Carolina: $10.5B 3M Settlement Over PFAS Water Contamination

3M has reached a multi-billion-dollar settlement to compensate U.S. public water systems for contamination caused by per- and polyfluorinated substances (PFAS), commonly found in firefighting foam and consumer products. The settlement, which received final approval from the U.S. District Court in Charleston, South Carolina, mandates payments between $10.5 billion and $12.5 billion through 2036, depending on additional contamination findings. The agreement addresses widespread PFAS pollution, which has been linked to serious health risks, including immune system damage and cancer.

The settlement stems from lawsuits filed by over 300 communities, including Stuart, Florida, against 3M and other manufacturers responsible for PFAS contamination. As part of the deal, water providers will receive compensation for filtering the chemicals from their systems. Some funds will also support further contamination testing, with affected systems eligible to apply for compensation through 2026. Scott Summy, an attorney representing the plaintiffs, emphasized the agreement’s significance, stating, “It’ll help rid our public drinking water systems of PFAS, and that’s the most important thing about the settlement.”

Nevada: $5.2B Verdict Against Real Water Over Toxic Contamination

A Nevada jury has awarded $5.2 billion in damages in a lawsuit against AffinityLifestyles.com Inc. and its Real Water brand, which was found liable for causing liver damage in consumers. The jury's verdict includes $230 million in compensatory damages and $5 billion in punitive damages for Hunter Brown and other plaintiffs. Real Water, marketed as a premium alkalized water with detoxifying properties, was recalled in 2021 after testing revealed it contained hydrazine, a toxic chemical used in rocket fuel. This verdict follows another multi-million-dollar award against Real Water, which has faced multiple lawsuits over its toxic contamination.

The case is the latest in a series of multi-million-dollar verdicts against Real Water, with previous awards totaling over $3.4 billion. Plaintiffs’ attorney Will Kemp anticipates the company’s insurance provider will challenge the payouts, given that AffinityLifestyles.com has filed for bankruptcy. Defense attorneys argued that the company was negligent but not reckless, as it was unaware of the contamination. Additional lawsuits remain pending against the company, highlighting the widespread impact of the toxic exposure.

Delaware: GSK Settles Zantac Lawsuits for $2.2B Over Cancer Claims

GSK has agreed to settle approximately 80,000 U.S. state court lawsuits related to its former blockbuster heartburn drug, Zantac, for up to $2.2 billion. The settlements cover 93% of the product liability claims against the company, though GSK has not admitted any liability. The litigation, centered on allegations that Zantac caused cancer, had weighed on GSK’s stock since August 2022. Following the announcement, GSK’s American depositary receipts surged 8% in after-hours trading. The company also agreed to pay $70 million to resolve a complaint by Valisure, a Connecticut-based laboratory, without admitting fault.

Despite the settlements, GSK maintains that scientific evidence does not consistently link ranitidine, the active ingredient in Zantac, to an increased cancer risk. The company stated that resolving the lawsuits was in its best long-term interest, eliminating financial uncertainty and the burden of ongoing litigation. GSK expects to take a $2.3 billion charge in its upcoming third-quarter earnings report, which includes costs for remaining pending cases. However, the company assured investors that these settlements will not impact its growth strategy or research and development plans.

Pennsylvania: $1.1B Philips CPAP Settlement Over Toxic Foam Exposure

Philips has reached a $1.1 billion settlement to resolve personal injury claims related to its recalled sleep apnea machines, which emitted toxic chemicals due to deteriorating sound abatement foam. Announced alongside its first-quarter earnings, the settlement covers litigation stemming from the 2021 recall and provides funding for medical monitoring of affected users. Despite the payout, Philips has not admitted liability or acknowledged any direct injuries or deaths caused by its devices.

The settlement follows a recent U.S. federal court order barring Philips Respironics from selling sleep apnea machines in the U.S. until it meets stringent safety requirements. The FDA has linked the defective devices to severe health conditions, including respiratory diseases, cancer, and kidney and liver damage, with over 500 reported deaths since 2021. Philips' replacement machines have also raised concerns, as they contain silicone-based foam that may emit harmful chemicals. The company must now submit to long-term facility inspections and hire independent safety experts, while affected customers may be eligible for remediation payments, including partial refunds.

Wisconsin: $750M Tyco Settlement Over PFAS Water Contamination

Tyco Fire Products has reached a $750 million settlement with public water systems affected by PFAS contamination from its firefighting foam. Under the agreement, $250 million will be distributed this spring, with the remaining $500 million following six months after preliminary court approval. The settlement does not include an admission of liability but aims to assist communities in upgrading water treatment infrastructure to address PFAS contamination.

PFAS, or per- and polyfluoroalkyl substances, are long-lasting synthetic chemicals linked to cancer, fertility issues, and immune system suppression. Environmental attorney Paul Napoli, representing affected communities, emphasized the settlement’s significance in protecting drinking water supplies. Tyco, a subsidiary of Johnson Controls, joins other manufacturers such as 3M and DuPont in settling PFAS-related lawsuits.

Conclusion

These 2024 product liability settlements and verdicts reflect a broader trend of corporate accountability for environmental and consumer safety violations. From PFAS contamination to toxic consumer products, companies are facing increasing legal and financial consequences for hazardous practices. While these agreements provide compensation and funding for remediation, ongoing litigation and regulatory scrutiny highlight the long-term impact of these issues on public health and safety.