Why Sotera Health Stock Rocketed a Whopping 115% This Week
A massive dark cloud hanging heavy over Sotera Health (NASDAQ: SHC) was lifted on Tuesday. After the company announced it had settled a clutch of lawsuits arising from alleged malfeasance by a subsidiary, relieved investors pushed its stock well higher across the subsequent trading days. All told, the stock more than doubled with a weekly gain of over 115%, according to data compiled by S&P Global Market Intelligence.
The accusations against that subsidiary, Sterigenics, stated that the Sotera unit was responsible for producing ethylene oxide emissions that seriously damaged the health of residents near its Illinois plant.
The many plaintiffs bringing the lawsuits and Sotera got at least something of what they wanted in a settlement that was announced Tuesday. The specialty healthcare company will pay out a total of $408 million to nearly all of the plaintiffs, and in return it will not admit to any liability.
Source Fool.com
