PFAS Settlement Law Firm Fees Warning to Municipalities

AG: Michigan News

Published March 30th, 2026

Detected March 31st, 2026

Summary

Michigan Attorney General Dana Nessel issued an advisory warning municipalities about potential excessive law firm fees when filing claims for PFAS water contamination settlements. The Attorney General urges local governments to file claims directly through the official portal rather than retaining outside counsel that may charge up to one-third of settlement proceeds. The settlements involve four major defendants (3M, DuPont, Tyco Fire Products, BASF) as part of AFFF Multi-District Litigation No. 2873.

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What changed

Michigan Attorney General Dana Nessel issued an advisory warning municipalities about law firms advertising services to help water systems obtain PFAS settlement proceeds. The settlements, approved by the U.S. District Court for the District of South Carolina as part of MDL 2873, involve four groups of settling defendants: 3M Company, E.I. Du Pont de Nemours, Tyco Fire Products LP and Chemguard, Inc., and BASF Corporation. The AG expressed concern that some law firms may charge fees representing up to one-third of settlement proceeds.

Municipalities should be aware that no separate legal representation is required to apply for settlement funds—eligible water systems can submit claims directly through the official portal managed by a Special Master and Claims Administrator. Before signing any agreement with outside firms, municipalities should carefully review the fine print. Eligible municipalities should consult their own attorneys if they have questions about the settlements.

What to do next

Review the claims process directly at pfaswatersettlement.com before engaging outside firms
Carefully read any agreement before signing to understand fee structures
Consider filing claims directly through the official portal without outside legal representation

Source document (simplified)

AG Nessel Encourages Municipalities to Review Public Water System Settlements Claims Process Before Entering Into Agreements with Outside Firms

March 30, 2026

LANSING – Michigan Attorney General Dana Nessel is encouraging municipalities to carefully review the class action settlements claims process designed to resolve allegations of PFAS contamination in Public Water Systems’ Drinking Water before entering into agreements with outside firms. The settlements, approved by the United States District Court for the District of South Carolina as part of AFFF Multi-District Litigation no. 2873, involve four groups of Settling 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 been made aware of law firms advertising their services to help municipalities obtain proceeds from these PFAS settlements. While municipalities may choose to retain legal support at their discretion, officials should understand the claims process prior to entering into an agreement.

“Unfortunately, even municipalities are not immune from bad actors who will try and capitalize on any situation. While these PFAS settlements offer an opportunity for qualified municipal water systems to apply for funding to treat and test for water contamination, local governments should take the time to understand the claims process before entering into an agreement with an outside firm,” said Attorney General Nessel. “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.”

The claims process is designed to allow municipalities to complete submissions directly through the claim’s 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. 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 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. Attorney General Nessel is concerned this may cause some municipalities to incur unnecessary expense and encourages municipalities to read the fine print before joining any agreement. Information on the basics of the settlements and key dates is available on the PFAS Water Settlement website.

Please note: This is not legal advice, and the State of Michigan cannot provide legal advice to local governments or water suppliers. Municipalities should consult with their own attorneys if they have questions about the meaning or impact of the proposed settlements.

MI Newswire Attorney General Press Release PFAS Contamination Environment Media Contact:

Danny Wimmer

Press Secretary

agpress@michigan.gov

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