SHC - Sotera gains 14% after finalizing ethylene oxide settlements in Illinois

2023-06-22 10:30:01 ET

Sterilization solutions provider Sotera Health ( NASDAQ: SHC ) added ~14% in the morning hours Thursday after announcing the completion of the January 2023 settlement program for ethylene oxide claims against its Sterigenics unit in Illinois.

In January, Sotera ( SHC ) agreed to pay $400M to settle hundreds of ethylene oxide cases pending against the unit in the Circuit Court of Cook County, Illinois, and the US District Court for the Northern District of Illinois.

The company said that out of 882 claimants, 879 had agreed to participate in the settlement program, and Sterigenics has decided to move ahead with the settlements pending a final order from the Circuit Court. The cases of three claimants who opted out are set for a pretrial hearing.

The settlements are not expected to incur additional charges for Sotera ( SHC ), except for the costs it has already recognized in Q4 2022.

Despite the settlements, the company didn’t admit to any wrongdoing. "The settlements are not to be construed as an admission of liability, and Sterigenics maintains that its Willowbrook operations did not pose a safety risk to the surrounding community," it said.

More on Sotera

• Sotera Health gets double upgrade at Barclays following Sterigenics settlement
• Sotera Health: Still Many Uncertainties With The Stock

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