3M 2006 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2006 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116


Antitrust Litigation
$VSUHYLRXVO\UHSRUWHG/H3DJH¶V,QFDWUDQVSDUHQWWDSHFRPSHWLWRURI0ILOHGDODZVXLWDJDLQVWWKH&RPSDQ\LQ
-XQHDOOHJLQJWKDWFHUWDLQPDUNHWLQJSUDFWLFHVRIWKH&RPSDQ\FRQVWLWXWHGXQODZIXOPRQRSROL]DWLRQXQGHUWKH
DQWLWUXVWODZV)ROORZLQJWKHHQWU\RIDYHUGLFWLQ/H3DJH¶VIDYRUDQGDSSHOODWHUXOLQJVVXVWDLQLQJWKDWYHUGLFWGLUHFWDQG
LQGLUHFWWDSHSXUFKDVHUVILOHGDQXPEHURISXUSRUWHGFODVVDFWLRQVDQGLQGLYLGXDODFWLRQVDJDLQVWWKH&RPSDQ\LQYDULRXV
VWDWHDQGIHGHUDOFRXUWV7KHVHFDVHVDOOHJHGWKDWWKH&RPSDQ\FRPSHWHGXQIDLUO\DQGXQODZIXOO\PRQRSROL]HGDOOHJHG
PDUNHWVIRUWUDQVSDUHQWWDSHDQGVRXJKWLQMXQFWLYHUHOLHIDQGGDPDJHVLQWKHIRUPRISULFHRYHUFKDUJHVWKH&RPSDQ\
DOOHJHGO\FKDUJHGIRUWKHVHSURGXFWV
7KH&RPSDQ\KDVUHVROYHGHDFKRIWKHVHDFWLRQV7KHVHWWOHPHQWVRIWKHYDULRXVSXUSRUWHGFODVVDFWLRQVUHFHLYHGILQDO
FRXUWDSSURYDOLQDQGWKHVHWWOHPHQWRIWKHVLQJOHFHUWLILHGFODVVDFWLRQSHQGLQJLQWKHIHGHUDOFRXUWLQ3HQQV\OYDQLD
UHFHLYHGSUHOLPLQDU\FRXUWDSSURYDOLQWKHIDOORIDQGLVVFKHGXOHGIRUDILQDOFRXUWDSSURYDOKHDULQJLQWKHVSULQJRI

%UHDVW,PSODQW/LWLJDWLRQ
7KH&RPSDQ\DQGFHUWDLQRWKHUFRPSDQLHVZHUHQDPHGDVGHIHQGDQWVLQSDVW\HDUVLQQXPHURXVFODLPVDQGODZVXLWV
DOOHJLQJGDPDJHVIRUSHUVRQDOLQMXULHVRIYDULRXVW\SHVUHVXOWLQJIURPEUHDVWLPSODQWVIRUPHUO\PDQXIDFWXUHGE\WKH
&RPSDQ\RUDUHODWHGFRPSDQ\7KHYDVWPDMRULW\RIFODLPVDJDLQVWWKH&RPSDQ\KDYHEHHQUHVROYHG7KH&RPSDQ\
GRHVQRWFRQVLGHULWVUHPDLQLQJSUREDEOHOLDELOLW\WREHPDWHULDO,QIRUPDWLRQFRQFHUQLQJWKHDVVRFLDWHGLQVXUDQFH
UHFHLYDEOHDQGOHJDOSURFHHGLQJVUHODWHGWRLWIROORZVLQWKHSDUDJUDSKHQWLWOHGBreast Implant Insurance Receivables
5HVSLUDWRU0DVN$VEHVWRV/LWLJDWLRQ
)RUPRUHWKDQ\HDUVWKH&RPSDQ\KDVGHIHQGHGDQGUHVROYHGWKHFODLPVRIKXQGUHGVRIWKRXVDQGVRILQGLYLGXDO
FODLPDQWVDOOHJLQJLQMXULHVIURPRFFXSDWLRQDOGXVWH[SRVXUHV$VRI'HFHPEHUWKH&RPSDQ\LVDQDPHG
GHIHQGDQWZLWKPXOWLSOHFRGHIHQGDQWVLQQXPHURXVODZVXLWVLQYDULRXVFRXUWVWKDWSXUSRUWWRUHSUHVHQWDSSUR[LPDWHO\
LQGLYLGXDOFODLPDQWVDGHFUHDVHIURPWKHDSSUR[LPDWHO\LQGLYLGXDOFODLPDQWVZLWKDFWLRQVSHQGLQJDW
'HFHPEHU
7KHYDVWPDMRULW\RIWKHODZVXLWVDQGFODLPVUHVROYHGE\DQGFXUUHQWO\SHQGLQJDJDLQVWWKH&RPSDQ\DOOHJHXVHRIVRPH
RIWKH&RPSDQ\¶VPDVNDQGUHVSLUDWRUSURGXFWVDQGVHHNGDPDJHVIURPWKH&RPSDQ\DQGRWKHUGHIHQGDQWVIRUDOOHJHG
SHUVRQDOLQMXU\IURPZRUNSODFHH[SRVXUHVWRDVEHVWRVVLOLFDFRDORURWKHURFFXSDWLRQDOGXVWVIRXQGLQSURGXFWV
PDQXIDFWXUHGE\RWKHUGHIHQGDQWVRUJHQHUDOO\LQWKHZRUNSODFH7KHUHPDLQLQJFODLPDQWVJHQHUDOO\DOOHJHSHUVRQDO
LQMXU\IURPRFFXSDWLRQDOH[SRVXUHWRDVEHVWRVIURPSURGXFWVSUHYLRXVO\PDQXIDFWXUHGE\WKH&RPSDQ\ZKLFKDUHRIWHQ
XQVSHFLILHGDQGE\RWKHUGHIHQGDQWVRURFFDVLRQDOO\DW&RPSDQ\SUHPLVHV
,QPDQ\RIWKHVHODZVXLWVDQGFODLPVWKH&RPSDQ\LVQDPHGDVDGHIHQGDQWZLWKPXOWLSOHFRGHIHQGDQWVZKHUHQR
SURGXFWWKH&RPSDQ\PDQXIDFWXUHGLVLGHQWLILHGRUZKHUHWKH&RPSDQ\LVXOWLPDWHO\GHWHUPLQHGQRWWRKDYH
PDQXIDFWXUHGWKHSURGXFWVLGHQWLILHGE\WKHSODLQWLIIV7KH&RPSDQ\¶VYLJRURXVGHIHQVHRIWKLVOLWLJDWLRQKDVUHVXOWHGLQL
GLVPLVVDOVRIPDQ\FODLPVZLWKRXWDQ\SD\PHQWE\WKH&RPSDQ\LQFOXGLQJPRUHWKDQVXFKGLVPLVVDOVLQ
DORQHLLDQDYHUDJHVHWWOHPHQWYDOXHRIOHVVWKDQSHUFODLPDQWIRUDOORIWKHFODLPVDQGODZVXLWVWKDWWKH
&RPSDQ\KDVUHVROYHGLQFOXGLQJWKRVHGLVPLVVHGZLWKRXWSD\PHQWDQGLLLMXU\YHUGLFWVIRUWKH&RPSDQ\LQVL[RIWKH
VHYHQFDVHVWULHGWRYHUGLFWVXFKWULDOVRFFXUUHGLQDQGDQGDQDSSHOODWHUHYHUVDOLQRIWKH
RQHMXU\YHUGLFWDGYHUVHWRWKH&RPSDQ\
0DQ\RIWKHUHVROYHGODZVXLWVDQGFODLPVLQYROYHGXQLPSDLUHGFODLPDQWVZKRZHUHUHFUXLWHGE\SODLQWLIIV¶ODZ\HUVWKURXJK
PDVVFKHVW[UD\VFUHHQLQJV7KH&RPSDQ\H[SHULHQFHGDVLJQLILFDQWGHFOLQHLQWKHQXPEHURIFODLPVILOHGLQIURP
SULRU\HDUVE\DSSDUHQWO\XQLPSDLUHGFODLPDQWV7KH&RPSDQ\DWWULEXWHVWKLVGHFOLQHWRVHYHUDOIDFWRUVLQFOXGLQJFHUWDLQ
FKDQJHVHQDFWHGLQVHYHUDOVWDWHVLQUHFHQW\HDUVRIWKHODZJRYHUQLQJDVEHVWRVUHODWHGFODLPVDQGWKHKLJKO\SXEOLFL]HG
GHFLVLRQLQPLGRIWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH6RXWKHUQ'LVWULFWRI7H[DVWKDWLGHQWLILHGDQGFULWLFL]HG
DEXVHVE\FHUWDLQDWWRUQH\VGRFWRUVDQG[UD\VFUHHQLQJFRPSDQLHVRQEHKDOIRIFODLPDQWV7KH&RPSDQ\H[SHFWVWKH
ILOLQJRIFODLPVE\XQLPSDLUHGFODLPDQWVLQWKHIXWXUHWRFRQWLQXHDWPXFKORZHUOHYHOVWKDQLQWKHSDVW7KH&RPSDQ\
EHOLHYHVWKDWGXHWRWKLVFKDQJHLQWKHW\SHDQGYROXPHRILQFRPLQJFODLPVLWLVOLNHO\WKDWWKHQXPEHURIFODLPVDOOHJLQJ
PRUHVHULRXVLQMXULHVLQFOXGLQJPHVRWKHOLRPDDQGRWKHUPDOLJQDQFLHVZKLOHUHPDLQLQJUHODWLYHO\FRQVWDQWZLOOUHSUHVHQW
DJUHDWHUSHUFHQWDJHRIWRWDOFODLPVWKDQLQWKHSDVW7KH&RPSDQ\KDVGHPRQVWUDWHGLQSDVWWULDOSURFHHGLQJVWKDWLWV
UHVSLUDWRU\SURWHFWLRQSURGXFWVDUHHIIHFWLYHDVFODLPHGZKHQXVHGLQWKHLQWHQGHGPDQQHUDQGLQWKHLQWHQGHG
FLUFXPVWDQFHV&RQVHTXHQWO\WKH&RPSDQ\EHOLHYHVWKDWFODLPDQWVDUHXQDEOHWRHVWDEOLVKWKDWWKHLUPHGLFDOFRQGLWLRQ
HYHQLIVLJQLILFDQWLVDWWULEXWDEOHWRWKH&RPSDQ\¶VUHVSLUDWRU\SURWHFWLRQSURGXFWV1RQHWKHOHVVWKH&RPSDQ\¶VOLWLJDWLRQ
H[SHULHQFHLQGLFDWHVWKDWVXFKFODLPVDUHFRVWOLHUWRUHVROYHWKDQWKHFODLPVRIXQLPSDLUHGSHUVRQVDQGLWWKHUHIRUH
DQWLFLSDWHVDQLQFUHDVHLQWKHDYHUDJHFRVWRIUHVROYLQJSHQGLQJDQGIXWXUHFODLPVRQDSHUFODLPEDVLVWKDQLW
H[SHULHQFHGLQSULRUSHULRGVZKHQWKHYDVWPDMRULW\RIFODLPVZHUHDVVHUWHGE\WKHXQLPSDLUHG
3ODLQWLIIVKDYHDVVHUWHGVSHFLILFGROODUFODLPVIRUGDPDJHVLQDSSUR[LPDWHO\RIWKHODZVXLWVWKDWZHUHSHQGLQJ
DJDLQVWWKH&RPSDQ\DWWKHHQGRILQDOOMXULVGLFWLRQV$PDMRULW\RIVWDWHVUHVWULFWRUSURKLELWVSHFLI\LQJGDPDJHVLQ
WRUWFDVHVVXFKDVWKHVHDQGPRVWRIWKHUHPDLQLQJMXULVGLFWLRQVGRQRWUHTXLUHVXFKVSHFLILFDWLRQ,QWKRVHFDVHVLQ