October 2025 Update
Stag Liuzza’s Role in the PFAS Litigation
As one of the nation’s leading environmental law firms, Stag Liuzza, L.L.C. has played a central role in the Aqueous Film-Forming Foam (AFFF) multidistrict litigation (MDL No. 2873) pending in the U.S. District Court for the District of South Carolina. Partner Michael G. Stag serves on the Plaintiffs’ Executive Committee appointed by Judge Richard Gergel. The firm represents public water systems (PWS) and municipalities across the country to recover expenses related to PFAS chemicals.
This is an update outlining the latest progress in the 3M, DuPont, Tyco, and BASF public-water-system settlement programs. This update provides much-needed clarity for utilities and local governments about claims, payment values, and the timelines for future distributions.
Overview of the AFFF Public-Water Settlements
The public-water settlements stem from lawsuits alleging that firefighting foams containing per- and polyfluoroalkyl substances (PFAS — “forever chemicals”) contaminated drinking-water sources nationwide.
Together, these settlements — led by 3M, DuPont, Tyco, and BASF — represent more than $13 billion in total recovery for public water systems. They compensate cities, towns, and utilities for testing, treatment, and remediation costs tied to PFAS contamination.
The 3M and DuPont Master Settlement Agreement divides qualifying public water systems into Phase One and Phase Two settlement programs. Thousands of water systems have now filed claims in Phase One, and distributions are underway. Phase Two water systems still have time to file claims.
Distribution Status and Future Payments
Under the October update, payments are proceeding in stages:
3M Phase One Program
The Settlement Administrator has distributed an estimated $3 billion to eligible claimants. The payment schedule in Exhibit K of the 3M Settlement Agreement states that payments will roll out annually through 2033, following the.
DuPont Phase One Program
We expect the Settlement Administrator to begin around October 15, 2025.
Tyco / BASF Settlement Programs
We project that Tyco and BASF settlement payments will start in December 2025.
In plain terms, 3M funds are already flowing, DuPont payments are imminent, and Tyco/BASF payouts are approaching — if claimants respond promptly to any requests from the Claims Administrator.
Understanding the Holdback Reserve
The “holdback” — a small reserve set aside for potential corrections or claim adjustments — has been set to only 5 percent for both 3M and DuPont. This is welcome news for utilities: as the funds will release more settlement dollars earlier, while still maintaining safeguards for administrative accuracy.
Special Needs Funds (SNF): Additional Reimbursement Opportunities
Each settlement includes a Special Needs Fund — 5 percent of its total value — designed to reimburse public water systems for certain previously incurred remediation costs. Special Needs Funds are substantial:
- 3M ≈ $ 343.75 million
- DuPont ≈ $ 32.6 million
- Tyco ≈ $ 37.5 million
- BASF ≈ $ 15.8 million
Deadlines have now passed (August 26 for 3M/DuPont; August 21 for Tyco/BASF). The Settlement Claims Administrator found many submissions deficient because they included anticipated future costs, which are ineligible. The fund only reimburses out of pocket costs. The Claims Administrator is currently reviewing and recalculating these claims, with final allocations expected by mid-2026.
For PWS utilities that submit SNF applications, it is crucial to track administrator updates closely and be prepared to clarify or supplement documentation as needed.
What These Developments Mean for Public Water Systems
1. More Certainty on Expected Recoveries: The Phase One Settlement allocations provide clarity on the amounts 3M and Dupont will pay to public water systems in settlement. The Settlement Committee created an Estimated Settlement Allocation Table to illustrate how much public water systems can expect to be paid. However, actual recovery per PWS will vary depending on water-source counts, PFAS levels, treatment costs, and counsel fees.
2. Administrative Accuracy Matters: The Claims Administrator continues to flag errors in claim forms, data entry, and supporting documentation. Even small issues — like mismatched water-source IDs or missing lab results — can delay payment. Municipal claimants should confirm they have responded to any deficiency letters.
3. Special Needs Fund Reimbursements Will Be Tight: Because claimed SNF costs exceed available funds, the administrator will likely reduce reimbursements pro rata. Claimants that submitted future expenses or did not properly document incurred costs may see further reductions. That makes careful recordkeeping — and follow-up — essential through 2026.
4. Long-Term Budget Planning: While 3M payouts extend through 2033, most systems will receive the bulk of their funds within the first few years. Municipal finance departments should develop conservative cash-flow models that account for installment timing, holdback releases, and any potential delays in later phases.
Why Experienced Counsel Still Matters
Even though the settlement agreement establishes the allocation framework, legal representation remains critical for maximizing recovery and avoiding forfeiture. An experienced PFAS attorney can:
- Ensure claims are complete and compliant, avoiding deficiency delays.
- Audit ABS calculations and verify that allocations are accurate.
- Assist with SNF appeals or clarifications.
- Coordinate across regional water systems with shared facilities or sources.
- Model payment timing and budget impacts for multi-year planning.
At Stag Liuzza, our team works directly with utilities, engineers, and municipal finance officers to ensure claims are optimized and fully preserved. Because our firm serves on the leadership committee for the AFFF litigation, we receive real-time updates and can advocate effectively for client interests in national coordination meetings.
Next Steps for PWS Settlement Claimants
- Review Your Claim Status: Check you settlement portal to confirm there are no outstanding deficiency letters or missing documents.
- Estimate Your Recovery Range: Apply the projected net ABS values to your system’s score to build budget projections.
- Prepare for Multi-Year Distributions: Plan for annual 3M payments through 2033 and potential follow-up disbursements from holdbacks or SNFs in 2026.
- Stay Engaged with Experienced Counsel: If your system has not yet retained counsel, PWS should contact a firm experienced in AFFF settlement administration to ensure your PWS does not miss any funding opportunities.
Conclusion
October marks a turning point in the AFFF Public Water System settlements. For the first time, cities and utilities have definitive values, timelines, and procedures to measure their recoveries and plan infrastructure investments.
But certain settlement funds continue the allocation process — and many claims require follow-up, clarification, or reconciliation before final payment.
Stag Liuzza stands ready to assist public entities nationwide in maximizing their entitlement under the 3M, DuPont, Tyco, and BASF settlements. Our environmental litigation team can help review your claim status, calculate estimated recoveries, and prepare for future fund distributions.
👉 Learn more or schedule a consultation at www.stagliuzza.com/pfas-litigation
