3M $MMM stock plunged -by 10% on August 26, 2022, after a judge ruled against the company using bankruptcy to halt lawsuits. Guerilla Stock Trading detected Dark pool trades in the stock on August 26, 2022.
3M $MMM stock falls after judge denies plan to block 230,000 soldier lawsuits
On August 26, 2022, Steven Church of Bloomberg reported that 3M lost its attempt to block jury trials in more than 230,000 lawsuits accusing it of harming U.S. soldiers. Bankruptcy Judge Jeffrey Graham refused to temporarily halt the lawsuits accusing 3M and its bankrupt subsidiary, Aearo Technologies, of selling faulty combat earplugs that damaged the hearing of veterans who used them. Source: https://www.bloomberg.com/news/articles/2022-08-26/3m-cannot-use-bankruptcy-to-halt-230-000-lawsuits-judge-rules
3M Statement Regarding Bankruptcy Court Decision
On August 26, 2022, 3M released the following statement regarding the bankruptcy court decision:
“Earlier today, the United States Bankruptcy Court in the Southern District of Indiana declined Aearo Technologies’ request for a preliminary injunction to ongoing litigation against 3M related to Combat Arms Earplug Version 2 products.
Aearo Technologies and 3M disagree with the ruling, and Aearo intends to appeal the decision. Aearo will continue in the chapter 11 proceedings, which it believes will offer a more efficient, equitable, and expeditious pathway to resolving these matters for all parties. 3M also will continue to vigorously defend its position in the multi-district litigation and in its appeals in that litigation.”
3M expects to complete the pending separation of its food safety business on the targeted closing date of September 1, 2022.
Dark Pool Trades Detected In 3M $MMM Stock
Guerilla Stock Trading detected dark pool orders in 3M $MMM stock on August 28, 2022. The price action on the day suggests that the dark pool trades were mainly selling. A narrative does emerge that when the bankruptcy judge ruled that 3M could not halt lawsuits via bankruptcy, some institutional investors reduced 3M stock holdings within portfolios.
Make sure to review this lesson on dark pool trading so that you understand the chart above.
📺 3M’s Food Safety Spinoff – What You Need To Know!
Neogen shareholders approval proposals required for a 3M food safety combination
On August 17, 2022, Neogen Corporation (NEOG) announced that, at the special meeting of Neogen shareholders, Neogen shareholders voted to approve all proposals required in connection with the pending combination of the food safety business of 3M Company (MMM) with Neogen, including the issuance of shares of Neogen common stock according to the Agreement and Plan of Merger, dated as of December 13, 2021, among Neogen, 3M, Nova RMT Sub, Inc., a wholly owned subsidiary of Neogen, and Garden SpinCo Corporation, currently a wholly owned subsidiary of 3M, and certain amendments to Neogen’s organizational documents. The transaction is expected to be completed on September 1, 2022, subject to the satisfaction or waiver of the remaining customary closing conditions. Neogen will file the final voting results, as certified by the independent Inspector of Election, on a Form 8-K with the U.S. Securities and Exchange Commission.
📺 3M Earplug Lawsuit + Bankruptcy Dividend Stock Opportunity or Disaster?
3M $MMM Chart Technical Analysis
3M $MMM stock is in a technical strong downtrend rating. Long-term indicators support a continuation of the downtrend, but short-term indicators suggest that $MMM stock is oversold and a trend reversal is possible.