3M Settlement Agreement

The government has set up different working groups to focus efforts and determine how compensation will be spent. District employees are active in several of these groups. Under the terms of the transaction, 3M will make a fixed financial contribution of $55 million to support Wolverine`s past and ongoing efforts to clean up PFAS as part of Wolverine`s executive order with the State of Michigan. This amount was part of 3M`s significant fourth-quarter legal charge, which was discussed at the January 28, 2020 earnings conference and is listed on the recently filed Form 10-K. 3M is not responsible for the additional response costs associated with the approval order. Wolverine reflected an incremental cost of $113 million for environmental rehabilitation and stated that actual amounts could vary significantly in the future if circumstances develop. The transaction announced today clarifies allegations that 3M violated the False Claims Act by selling or selling defective earplugs to the Defence Logistics Agency. In particular, the United States asserted that 3M and its predecessor, Aearo Technologies, Inc., knew that CAEv2 was too short to be properly inseminated in users` ears and that earplugs could break off in an unprecable manner and therefore did not work well for some people. The United States also claimed that 3M had not disclosed this design error to the military. “Today`s agreement will ensure that those who do business with the government know that their actions will not go unnoticed,” said Frank Robey, director of the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command. “Well-made security equipment for the intervention of our soldiers is essential to the availability of our military.

Our officers will respond robustly to protect the safety of our military. “This regulation demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies to account for the supply of poor quality products, particularly products that could have a direct impact on the health and well-being of our service officers. DCIS protects the integrity of the Department of Defense`s programs by avoiding fraud, waste and abuse that negatively impact the well-being of our troops,” said Special Representative E. Craig Jr., DCIS Mid-Atlantic Field Office. The allegations that were settled by the transaction were filed as part of a lawsuit filed under the False Claims Act under the charge of the informant or whistleblower. The law allows private parties to sue on behalf of the government if they believe that the accused have filed false claims for public funds and participate in any recovery. As part of today`s resolution, the whistleblower receives $1,911,000. On February 20, 2018, the State of Minnesota filed its complaint against 3M Company in exchange for an $850 million transaction. Minnesota`s attorney general sued 3M in 2010 for accusing the production of chemicals known as PFAS, drinking water and natural resources in the Twin Cities metropolitan area. After payment of legal and other expenses, approximately $720 million is invested in drinking water and raw materials projects in the Twin Cities East metropolitan area.

3M and Wolverine World Wide, Inc. have reached an agreement to treat PFAS in the environment in the Townships of Plainfield, Michigan and Algoma. This agreement resolves disputes between the two companies and covers only the action between Wolverine and 3M. The agreement was the result of a coordinated effort by the Department of Justice`s Civil Division, the U.S. District Attorney`s Office for the District of South Carolina, the Army Criminal Investigation Command and the Defense Criminal Investigative Service.