We are investigating 3M Company (MMM) (“3M” or the “Company”) for potential violations of the federal securities laws.
In 2010, the State of Minnesota sued 3M, demanding $5 billion to clean up the damage 3M caused in the state as a consequence of toxic per- and polyfluoroalklyl substances (“PFAS”) produced by the Company. On the eve of trial in February 2018, the case settled for $850 million, without any admission of wrongdoing by 3M. On April 25, 2019, 3M announced its first quarter 2019 financial results, acknowledging that the first quarter of 2019 “‘was a disappointing start to the year for 3M’” and disclosing that on top of the “$1.16 per share impact” already recorded in the first quarter of 2018 related to the settlement with the State of Minnesota, 3M had “recorded significant litigation-related pre-tax charges of $548 million, or $0.72 per share” in the first quarter 2019 for additional PFAS liability. 3M also announced that it was cutting 2,000 jobs, approximately 2% of its 93,500 employees, and trimming fiscal year 2019 capital expenditures, including on manufacturing, in addition to accelerating other cost control reductions it said were already underway. On this news, 3M’s stock price fell $28.36 per share, or nearly 13%, to close at $190.72. On May 29, 2019, the State of New Hampshire filed two lawsuits against 3M and others for PFAS contamination, with the goal of recouping damages for PFAS contamination found in all ten New Hampshire counties. On this news, 3M’s stock price fell $1.95 per share, or 1.19%, to close at $161.40 per share on May 29, 2019.