3M (MMM) -) shares extended gains Tuesday after the industrial group confirmed details of a $6 billion settlement it reached to resolve legal claims linked to earplugs sold to the U.S. military.
3M said it had resolved litigation linked to a bankrupt subsidiary, Aearo Technologies, that will see it pay $6 billion over the next six years, including $1 billion in common stock, tied to the sale of its Combat Arms Earplugs.
"This agreement, reached through the mediation process that 3M has previously disclosed, is structured to promote participation by claimants and is intended to resolve all claims associated with the Combat Arms Earplug products," 3M said in a statement.
This agreement is not an admission of liability. The products at issue in this litigation are safe and effective when used properly,: the statement added. "3M is prepared to continue to defend itself in the litigation if certain agreed terms of the settlement agreement are not fulfilled."
3M shares, which surged 5.22% yesterday amid reports of a potential deal on the earplug litigation, were marked 1.75% higher in early Tuesday trading to change hands at $105.94 each.
Earlier this spring, 3M, St. Paul, Minn., also agreed to pay around $10.3 billion to a host of public water companies over the next 10 years in order to settle suits linked to the use of per- and polyfluoroalkyl substances, also known as PFAs and often referred to as "forever chemicals." Payments could rise to as much as $12.5 billion, 3M said, depending on the levels of PFAs found in public water systems.
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