Michigan Attorney General Warns Municipalities About PFAS Settlement Claims Process

Michigan Attorney General Dana Nessel Issues Warning to Local Governments on PFAS Settlement Claims

LANSING - Michigan Attorney General Dana Nessel has issued a caution to municipalities across the state regarding the class action settlements claims process for PFAS contamination in public water systems before hiring outside law firms to assist with the application process.

The settlements were approved by the United States District Court for the District of South Carolina as part of AFFF Multi-District Litigation no. 2873. The litigation involves four groups of defendants: the 3M Company; E.I. Du Pont de Nemours and company and affiliated entities; Tyco Fire Products LP and Chemguard, Inc.; and BASF Corporation.

The Department of Attorney General has become aware of law firms advertising their services to help municipalities obtain proceeds from these PFAS settlements. While municipalities retain the discretion to hire legal support, Nessel is urging officials to understand the claims process before entering into any agreement with outside counsel.

"Unfortunately, even municipalities are not immune from bad actors who will try and capitalize on any situation," Nessel said.

The attorney general emphasized that local governments should take time to understand the claims process before signing contracts that could potentially cost as much as a third of any settlement.

"Local governments should take the time to understand the claims process before entering into an agreement with an outside firm. Carefully read the fine print in any agreement before signing a contract that potentially and unnecessarily consigns as much as a third of any given settlement," Nessel said.

Direct Application Process Available

The claims process is designed to allow municipalities to complete submissions directly through the claim portal managed by a Special Master and a Claims Administrator on the PFAS Settlement website.

Eligible water systems are already included in the settlement class unless they previously opted out. A list of eligible municipalities is available online, as are upcoming deadlines, FAQs, and contact information for the Claims Administrator, the Special Master, and Class Counsel who represent all eligible water systems.

Nessel noted that no separate legal representation is required to apply for settlement funds.

"The formulas that will determine the exact distribution amounts to eligible water systems are pre-determined as part of the settlement's allocation procedures," the attorney general said.

Settlement Factors Pre-Determined

The volume of impacted water and the degree of impact are the main factors in calculating the cost of treating PFAS. There is no negotiation to increase an eligible water supply's allocation.

Some law firms may charge a fee for their services or request a percentage of settlement proceeds as compensation, but Nessel is concerned this may cause municipalities to incur unnecessary expense.

"I encourage municipalities to read the fine print before joining any agreement," Nessel said.

Settlement Information Available Online

Information on the basics of the settlements and key dates is available on the PFAS Water Settlement website. The Department of Attorney General is available to answer any questions municipalities may have about the process.

PFAS (per- and polyfluoroalkyl substances) are chemicals known as "forever chemicals" that have been linked to various health concerns. The AFFF (aqueous film-forming foam) used in firefighting has been found to contain these substances, which can contaminate water supplies near fire training facilities and airports.

The Michigan Attorney General's office has been actively monitoring the PFAS settlement claims process to ensure municipalities receive fair treatment and are not taken advantage of by predatory legal services.

Sources

• AG Nessel warns Michigan cities about PFAS settlement scams - https://www.abc12.com/news/ag-nessel-warns-michigan-cities-about-pfas-settlement-scams/article_7e41e67f-a45f-4099-a9f7-48b63bb72353.html