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onecount,includingfindingsthat3M’spatentswereinvalidandnotinfringed,andthat3Mhadcommittedanantitrustviolationby
seekingtoenforceapatentithadobtainedfraudulently.Thejuryalsorecommendedthatthecourtfind3Mhadcommitted
inequitableconductinobtainingthepatents,andthatthepatentswerethereforeunenforceable.Sincethevastmajorityof
TransWeb’sclaimfortrebleantitrustdamageswasintheformofitsattorneys’feesandexpensesinconnectionwiththedefenseof
thepatentcase,thepartiesagreedthatthemeasureofdamageswouldnotgotothejury,butratherwouldbesubmittedtoaspecial
masterafterthetrial.InApril,2014,thecourtissuedanorderdenying3M’smotionstosetasidethejury’sverdict.Inaddition,the
courtfoundtwo3Mpatentsunenforceableduetoinequitableconduct.Thecourtacceptedthespecialmaster’srecommendationasto
theamountofattorneys’feestobeawardedasdamages,andenteredjudgmentagainst3Mintheamountofapproximately$26
million.InJuly2014,3MfiledanoticeofappealofthejudgmenttotheU.S.CourtofAppealsfortheFederalCircuit.OnFebruary
10,2016,theU.S.CourtofAppealsfortheFederalCircuitissueditsdecisionaffirmingthelowercourt’sjudgment.3Misreviewing
theappellatecourt’sdecisiontodeterminenextsteps.Theimpactoftheappellatecourt’sdecisionisnotmaterialtotheCompany’s
consolidatedresultsofoperationsorfinancialcondition.
ProductLiabilityLitigation
ÉlectricitédeFrance(EDF)filedalawsuitagainst3MFranceintheFrenchcourtsin2006claimingcommerciallossandproperty
damageafterexperiencingelectricalnetworkfailureswhichEDFclaimswerecausedbyallegedlydefective3Mtransitionsplices.
TheFrenchCourtofAppealsatVersaillesaffirmedthecommercialtrialcourt’sdecisionthatthetransitionsplicesconformedto
contractspecificationsandthatEDFthoroughlyanalyzedandtestedthesplicesbeforepurchaseandinstallation.TheCourtof
Appeals,however,orderedacourt-appointedexperttostudytheproblemandissueatechnicalopiniononthecauseofthenetwork
failures.Thecourt-appointedexpertsubmittedhisreporttothecommercialcourtinMay2014.Theexpertfoundpotentialdefectsin
3M’sproductandfoundthatEDFincurreddamagesinexcessof100millionEuros.Theexpert’sopinionisnotdispositiveof
liabilityordamagesandissubjecttonumerousfactualandlegalchallengesthatwillberaisedwiththecourt.Thepartiesarebriefing
thecourtontheirrespectivepositions.Oncethebriefingiscomplete,thecommercialcourtmaytakefromsixmonthstooneyearto
renderitsdecision.
OnecustomerobtainedanorderintheFrenchcourtsagainst3MPurificationSAS(aFrenchsubsidiary)inOctober2011appointing
anexperttodeterminetheamountofcommerciallossandpropertydamageallegedlycausedbyallegedlydefective3Mfiltersused
inthecustomer’smanufacturingprocess.AnAustriansubsidiaryofthissamecustomeralsofiledaclaimagainst3MAustriaGmbH
(anAustriansubsidiary)and3MPurificationSASintheAustriancourtsinSeptember2012seekingdamagesforthesameissue.
Thosetwocasesarestillpending.Anothercustomerfiledalawsuitagainst3MDeutschlandGmbH(aGermansubsidiary)inthe
GermancourtsinMarch2012seekingcommerciallossandpropertydamageallegedlycausedbythesame3Mfiltersusedinthat
customer’smanufacturingprocess;theCompanyhasresolvedtheclaimsintheGermanlitigation.TheCompanyhasalsosettled
withoutlitigationtheclaimsoftwoothercustomersarisingoutofthesameissue.Theamountspaidarenotmaterialtothe
Company’sconsolidatedresultsofoperationsorfinancialcondition.
AsofDecember31,2015,theCompanyisanameddefendantin122lawsuits,mostofwhicharependinginfederalorstatecourtin
Minnesota,inwhichtheplaintiffsclaimtheyunderwentvariousjointarthroplasty,cardiovascular,andothersurgeriesandlater
developedsurgicalsiteinfectionsduetotheuseoftheBairHugger™patientwarmingsystem.TheU.S.JudicialPanelon
MultidistrictLitigationgrantedtheplaintiffs’motiontotransferandconsolidateallcasespendinginfederalcourtstotheU.S.
DistrictCourtfortheDistrictofMinnesotatobemanagedinamulti-districtproceedingduringthepre-trialphaseofthelitigation.
TheBairHugger™productlinewasacquiredby3Maspartofthe2010acquisitionofArizant,Inc.,aleadingmanufacturerof
patientwarmingsolutionsdesignedtopreventhypothermiaandmaintainnormalbodytemperatureinsurgicalsettings.Noliability
hasbeenrecordedforthismatterbecausetheCompanybelievesthatanysuchliabilityisnotprobableandestimableatthistime.
Forproductliabilitylitigationmattersdescribedinthissectionforwhichaliabilityhasbeenrecorded,theCompanybelievesthe
amountrecordedisnotmaterialtotheCompany’sconsolidatedresultsofoperationsorfinancialcondition.
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