We have seen J&J take two different strategies to dump it’s talc liability, and Honeywell try to stick it’s Garrett spinoff with it’s asbestos liability. Now, I suspect 3M is joining the spin parade.
3M to spin off health care business and create two listed companies
The spinoff is expected to be completed by the end of 2023. 3M announced the move as its reported second-quarter earnings and offered an update on litigation related to Combat Arms earplugs.
Like Garrett and J&J’s “Texas two-step” sham company, I expect the 3M spinoff to be set up to fail, to roger the ear plug claimants.
Found an article with more detail.
3M had declared the subsidiary that is liable for the ear plugs bankrupt, and tossed $1B into a settlement fund. I am sure the appropriateness of that bankruptcy filing will be contested, as the parent company is far from BK.
So, by the time the bankruptcy case has gone through litigation, the health products spin off will be done, so, if the BK is tossed as abusive, the health care company will have the liability. Either way, claimants are shortchanged, for the benefit of 3M.
It’s the Shiny thing to do.
In a separate announcement, 3M said its Aearo Technologies subsidiary and related entities have voluntarily filed for bankruptcy, a move that aims to resolve litigation related to Combat Arms Earplugs. In a statement, 3M said that it has committed $1 billion to fund a trust to resolve all claims.
You wonder what they will do to cover their PFOA liabilities. Chemours just filed a lawsuit challenging EPA classification of their newest replacement.