ST.
PAUL, Minn., Feb. 3, 2023
/PRNewswire/ -- Certain plaintiffs in the ongoing Combat Arms
Earplugs Version 2 (CAEv2) litigation have filed a motion to
dismiss Aearo's bankruptcy filing with the U.S. Bankruptcy Court in
Indianapolis.
Aearo and 3M intend to continue to
engage in mediation discussions toward a global resolution working
with all parties, the mediators, and the courts. The motion
to dismiss has no immediate impact on these ongoing efforts to
resolve the litigation.
Aearo and 3M will
remain focused on these discussions and to finding a path
forward toward a prompt and complete resolution for all parties
while they prepare their written response to the motion and for a
future hearing.
The facts and circumstances of Aearo and 3M's efforts to resolve
ongoing Combat Arms earplugs litigation are different from those
involving the LTL Management case or a "Texas Two-Step" in many
important ways, including:
- Aearo is a valid, existing business with more than 40 years of
operating history.
-
- The bankruptcy court has repeatedly reinforced Aearo's
legitimacy, including in its opinion on the Preliminary
Injunction.
- The bankruptcy court expressly stated that the Aearo entities
"are appropriate debtors with cognizable liabilities under the
Bankruptcy Code" and "are named as defendants in most, if not
nearly all, of the Actions."
- Aearo's case is in the Seventh Circuit. The standard for
dismissal of a chapter 11 case varies among Circuit courts, as
acknowledged by the Third Circuit in its decision.
If the motion to dismiss is granted and upheld on appeal, it
would needlessly disrupt the well-established Chapter 11 process to
return to protracted litigation in the mass tort system, which
after sixteen trials to-date has not provided clarity or certainty.
The well-established Chapter 11 process is intended to reduce the
cost and time that could otherwise be required for all parties to
litigate on a case-by-case basis.
Aearo and 3M will continue to
vigorously defend their position regarding this motion, in the
multi-district litigation, and in pursuing their appeals. Oral
arguments for the appeals of the initial bellwether trials, which
include important legal and evidentiary issues, are scheduled to be
held during the week of May 1, 2023,
and could significantly alter the progression and outcome of this
litigation.
3M has great respect for the brave
men and women who protect us around the world, and their safety is
our priority. We are proud of our commitment to keeping our
military safe through the supply of 3M products and we will continue to defend the
product at issue in this litigation.
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 "anticipate," "estimate,"
"expect," "aim," "project," "intend," "plan," "believe," "will,"
"should," "could," "target," "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) risks
related to unexpected events such as the public health crises
associated with the coronavirus (COVID-19) global pandemic; (3)
foreign currency exchange rates and fluctuations in those rates;
(4) liabilities related to certain fluorochemicals, including
lawsuits concerning various PFAS-related products and chemistries,
and claims and governmental regulatory proceedings and inquiries
related to PFAS in a variety of jurisdictions; (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, 2021, as updated by the Company's
Current Report on Form 8-K dated April 26,
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 or supply chain interruptions; (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, and possible organizational restructuring; (11)
operational execution, including scenarios where the Company
generates fewer productivity improvements than planned; (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; (16) matters relating to the
voluntary chapter 11 proceedings of the Company's subsidiary Aearo
Technologies and certain of its affiliates (the "Aearo Entities"),
including legal risks related to the chapter 11 proceedings;
potential impacts to the Company's reputation and its relationships
with customers, suppliers, employees, regulators and other
counterparties and community members; potential impacts to the
Company's liquidity or results of operations, including risks
related to the amount that will be necessary to fully and finally
resolve all of the Company's obligations to make payments to
resolve such claims under the terms of its funding and
indemnification agreement with the Aearo Entities; and the Aearo
Entities' ability to navigate the chapter 11 proceedings to obtain
approval and consummation of a plan of reorganization; and (17)
matters relating to the Company's plans to exit PFAS manufacturing
and discontinue use of PFAS across its product portfolio. 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 or on Twitter at @3M or
@3MNews.
Please note that the company announces material financial,
business and operational information using
the 3M investor relations website, SEC filings, press
releases, public conference calls and webcasts. The company also
uses the 3M news center and social media to communicate
with our customers and the public about the company, products and
services and other matters. It is possible that the
information 3M posts on the news center and social media
could be deemed to be material information. Therefore, the company
encourages investors, the media and others interested
in 3M to review the information posted on 3M's news
center and the social media channels such as Twitter @3M or
@3MNews.
Contacts
3M Investor Contacts:
Bruce Jermeland,
651-733-1807
or
Diane Farrow, 612-202-2449
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SOURCE 3M