As of final registration date, participation
level exceeds 99%
ST.
PAUL, Minn., March 26,
2024 /PRNewswire/ -- Today, 3M announced that, as of the final registration
date for the Combat Arms Earplug settlement agreement, more than
99% of claimants are participating in the settlement.
Out of a total of more than 293,000 claims, more than 249,000
claimants have registered to participate in the settlement. In
addition, more than 41,000 claims have been dismissed by the courts
administering the agreements. Once all the settlement registrations
that have been submitted by claimants have been processed and
validated, 3M anticipates that the
settlement will have achieved a more than 99.9% participation
level.
Under the terms of the agreement, 3M will pay a total amount of up to $6.0 billion, between 2023 to 2029, to resolve
the litigation, provided all participation thresholds are met. This
represents a total pre-tax present value of $5.3 billion, for which the company has
previously recorded reserves.
Aearo and 3M are actively engaged
in insurance recovery activities to offset a portion of the
settlement payments. Formal recovery processes are underway through
a lawsuit filed in Delaware, as
well as arbitration proceedings.
Additional details of the agreement, including the agreed-upon
payment schedule, are available at www.3Mearplugsfacts.com and in
3M's filings with the Securities and Exchange Commission.
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, 2023 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,
whether the insurance recovery activities by 3M to offset a portion of the settlement payments
would be successful, 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.
Investor Contact:
Bruce
Jermeland
651-733-1807
or
Diane Farrow
612-202-2449
or
Eric Herron
651-233-0043
Media Contact:
Sean
Lynch
651-262-9310
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SOURCE 3M Company