3M has elected
to pay $1 billion in cash, instead of
stock
ST.
PAUL, Minn., Jan. 29,
2024 /PRNewswire/ -- Today, 3M (NYSE: MMM) announced that claimant
participation in the Combat Arms Earplugs litigation settlement is
on track to exceed the 98% participation threshold set forth in the
settlement agreement by the final registration date of March 25, 2024.
Under the terms of the settlement announced in August
2023, 3M agreed to pay a total of
$6.0 billion to resolve the
litigation over the time period of 2023 to 2029, including the
option to pay up to $1.0 billion of
that total in 3M stock or cash, upon
satisfaction of the 98% participation level. 3M has elected to pay the $1.0 billion in cash, instead of stock.
The strong support from more than 250,000 eligible claimants who
have elected to participate in the settlement and release and
dismiss their claims, coupled with ongoing dismissals of claims
that do not meet participation or litigation requirements ordered
by the MDL Court, are expected to resolve more than 99% of the
claims in the litigation by the final registration date.
To learn more, visit 3m-earplugsettlement.com.
Forward-Looking Statements
This news release contains forward-looking information
about 3M's financial results and estimates and business prospects
that involve substantial risks and uncertainties. You can identify
these statements by the use of words such as "plan," "expect,"
"aim," "believe," "project," "target," "anticipate," "intend,"
"estimate," "will," "should," "could," "would," "forecast" and
other words and terms of similar meaning in connection with any
discussion of future operating or financial performance or business
plans or prospects. Among the factors that could cause actual
results to differ materially are the following: (1) worldwide
economic, political, regulatory, international trade, geopolitical,
capital markets and other external conditions and other factors
beyond the Company's control, including inflation, recession,
military conflicts, natural and other disasters or climate change
affecting the operations of the Company or its customers and
suppliers; (2) foreign currency exchange rates and fluctuations in
those rates; (3) risks related to certain fluorochemicals,
including liabilities related to claims, lawsuits, and government
regulatory proceedings concerning various PFAS-related products and
chemistries, as well as risks related to the Company's plans to
exit PFAS manufacturing and discontinue use of PFAS across its
product portfolio; (4) risks related to the proposed class-action
settlement ("PWS Settlement") to resolve claims by public water
systems in the United States regarding PFAS; (5) legal
proceedings, including significant developments that could occur in
the legal and regulatory proceedings described in the Company's
Annual Report on Form 10-K for the year ended Dec. 31,
2022 and any subsequent quarterly reports on Form 10-Q (the
"Reports"); (6) competitive conditions and customer preferences;
(7) the timing and market acceptance of new product and service
offerings; (8) the availability and cost of purchased components,
compounds, raw materials and energy due to shortages, increased
demand and wages, supply chain interruptions, or natural or other
disasters; (9) unanticipated problems or delays with the phased
implementation of a global enterprise resource planning (ERP)
system, or security breaches and other disruptions to the Company's
information technology infrastructure; (10) the impact of
acquisitions, strategic alliances, divestitures, and other
strategic events resulting from portfolio management actions and
other evolving business strategies; (11) operational execution,
including the extent to which the Company can realize the benefits
of planned productivity improvements, as well as the impact of
organizational restructuring activities; (12) financial market
risks that may affect the Company's funding obligations under
defined benefit pension and postretirement plans; (13) the
Company's credit ratings and its cost of capital; (14) tax-related
external conditions, including changes in tax rates, laws or
regulations; (15) matters relating to the proposed spin-off of the
Company's Health Care business; and (16) matters relating to Combat
Arms Earplugs ("CAE"), including those relating to, the August
2023 settlement that is intended to resolve, to the fullest
extent possible, all litigation
and alleged claims involving the CAE sold or
manufactured by the Company's subsidiary Aearo Technologies and
certain of its affiliates ("Aearo Entities")
and/or 3M ("CAE Settlement"), including, but not limited
to, whether the anticipated participation by plaintiffs in the CAE
Settlement will be achieved, whether the number of plaintiffs that
participate in the CAE Settlement will meet current expectations or
will fall below the level that would permit 3M to
terminate the CAE Settlement (and whether 3M will elect
to terminate the CAE Settlement if this occurs), whether there will
be a significant number of future claims by plaintiffs that decline
to participate in the CAE Settlement, whether the CAE Settlement is
appealed or challenged, the filing of additional, or the outcome of
any other pending or future, litigation relating to the products
that are the subject of the CAE Settlement, or changes in related
laws or regulations. Changes in such assumptions or factors could
produce significantly different results. A further description of
these factors is located in the Reports under "Cautionary Note
Concerning Factors That May Affect Future Results" and "Risk
Factors" in Part I, Items 1 and 1A (Annual Report) and in Part I,
Item 2 and Part II, Item 1A (Quarterly Reports). The Company
assumes no obligation to update any forward-looking statements
discussed herein as a result of new information or future events or
developments.
About 3M
3M (NYSE: MMM) believes science helps create a brighter
world for everyone. By unlocking the power of people, ideas and
science to reimagine what's possible, our global team uniquely
addresses the opportunities and challenges of our customers,
communities, and planet. Learn how we're working to improve lives
and make what's next at 3M.com/news.
Contacts
3M
Investor Contacts:
Bruce Jermeland, 651-733-1807
or
Diane Farrow, 612-202-2449
or
Eric Herron, 651-233-0043
Media Contact:
Tim Post, tpost3@mmm.com
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SOURCE 3M Company