Why 3M Stock Plunged in August and May Not Recover Soon
Shares of the industrial conglomerate 3M (NYSE: MMM) ended July on a strong note but failed to sustain the momentum. They plunged 13.2% in August, according to data provided by S&P Global Market Intelligence.
3M made a huge announcement in July that sent its stock flying, but a lingering overhang of lawsuits that could cost the company billions of dollars panicked investors and sent the stock tumbling to multiyear lows.
3M faces massive litigation risks, including lawsuits by veterans for faulty earplugs that caused hearing problems. While these lawsuits were expected to hurt 3M, investors only got an idea about the extent of potential damage last month. It stunned them.
Source Fool.com
