NEW YORK, Aug. 24, 2019 /CNW/ -- Pomerantz LLP announces that a class action lawsuit has been filed against 3M Company ("3M" or the "Company") (NYSE: MMM) and certain of its officers. The class action, filed in United States District Court, for the District of New Jersey, and indexed under 19-cv-17090, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired publicly traded 3M securities between February 9, 2017 and May 28, 2019, inclusive (the "Class Period") against 3M, its current and former Chief Executive Officer ("CEO"), and its Chief Financial Officer ("CFO") for violating Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and SEC Rule 10b-5 promulgated thereunder (17 C.F.R. § 240.10b-5) by engaging in a scheme to defraud investors and issuing false and misleading statements to conceal the truth about the Company's exposure to legal liability associated with its most lucrative product offerings: man-made chemicals known as per- and polyfluoroalkyl substances ("PFAS").
If you are a shareholder who purchased 3M securities during the class period, you have until September 27, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
3M is an American multinational conglomerate corporation that produces a variety of chemical substances and related products. 3M's most lucrative product has been PFAS. PFAS are characterized by bonds between carbon and fluorine that are among the strongest in organic chemistry. PFAS are man-made chemicals that come in 5,000 or more varieties and are used in industrial and consumer products, including non-stick cookware, water-repellent clothing, camping gear, shoes, stain resistant fabrics, textiles and carpets, cosmetics, surfactants for electronics manufacturing, and products that resist grease, water, and oil, such as coated papers for fast-food takeout.
The complaint alleges that during the Class Period, 3M and certain of its officers made materially false and misleading statements and/or failed to disclose adverse information regarding 3M's business and operations. Specifically, defendants failed to disclose the extent of the Company's exposure to legal liability associated with 3M's most lucrative product offerings: man-made chemicals known as per- and polyfluoroalkyl substances ("PFAS"). While publicly denying that PFAS cause harm to humans and the environment, defendants concealed and misrepresented: (i) 3M's vast internal evidence dating back decades confirming that PFAS are toxic (which was first publicly revealed in February 2018 by Minnesota's Attorney General); (ii) 3M's decades-long history of suppressing negative information and/or damaging data about PFAS; and (iii) 3M's legal exposure to state, county, and local governments and individuals around the country as a result of its knowledge and intentional concealment of the toxic harm caused by the use of PFAS. These omissions and misrepresentations caused 3M's stock price to trade at artificially inflated prices of as high as $258 per share during the Class Period.
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 of a lawsuit brought by 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 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, the price of 3M common stock declined nearly 13%.
Then on May 29, 2019, New Hampshire filed two lawsuits against 3M and others for PFAS contamination. New Hampshire's Attorney General said the goal was to recoup damages for the PFAS contamination that had been found in all ten New Hampshire counties, noting that, in towns like Merrimack and Portsmouth, the contamination had put hundreds of families on bottled water. On this news, the price of 3M common stock declined from its close of $163.35 per share on May 28, 2019 to trade as low as $160.50 per share in intraday trading and close at $161.40 per share on May 29, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP