3M stock falls to 2-1/2-year low as company appeals earplug lawsuit ruling

August 30, 2022

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3M($NYSE:MMM) stock fell to a 2-1/2-year low on Monday as the company appealed a recent bankruptcy court ruling. The price slipped as much as 3% to $125.27 a share before partly rebounding during the session. The company filed a notice to appeal a judge’s decision that denied an effort to halt more than 230,000 lawsuits claiming its earplugs were faulty, Bloomberg Law reported. The lawsuits allege that 3M’s earplugs are defective and can cause hearing loss. If the appeal is unsuccessful, 3M could be facing significant financial damages. The earplugs were originally designed for the military, but 3M has also sold them to civilians. It is unclear how long the appeal process will take, but it is possible that it could drag on for months or even years. In the meantime, 3M’s stock price is likely to remain volatile as investors weigh the potential financial impact of the lawsuit.

Stock Price

Investors are clearly worried about the potential financial impact of the lawsuit, as well as the possibility that 3M will have to recall and replace the earplugs. This could be a major blow to the company’s reputation and bottom line. For now, 3M is still a strong company with a diversified product portfolio. But the earplug issue is a major concern, and investors are right to be cautious.

VI Analysis

According to the data from the VI app, 3M is a ‘cow’ type of company. Cows are companies that have a track record of paying out consistent and sustainable dividends. Dividend paying companies are deemed less risky as they pursuit growth at a sustainable rate. 3M is strong in dividend, profitability, and weak in asset, growth. However, the company has a high health score of 8/10 with regard to its cashflows and debt, which means it is capable to sustain future operations in times of crisis. For more details please visit Star Chart.


The company is facing hundreds of lawsuits from military veterans who allege that the earplugs 3M supplied to the US military caused them to suffer hearing loss and other injuries. Investors are worried about the potential liability 3M faces and the impact it could have on the company’s bottom line. 3M is a diversified company with a strong history of profitability, so it is still a good investment despite the current challenges it faces.

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