Consent Decree resolves environmental litigation between the Company, State of Michigan, and Townships Wolverine reaches settlement with 3MROCKFORD, Mich., Feb. 20, 2020 (GLOBE NEWSWIRE) — Wolverine World Wide, Inc. (NYSE: WWW) announced that U.S. District Judge Janet T. Neff has approved a Consent Decree reached earlier this month among the Company, the State of Michigan, Plainfield Charter Township, and Algoma Township. This Consent Decree resolves the litigation between the parties and includes significant next steps in Wolverine’s already extensive efforts to ensure long-term water quality and continued environmental remediation in and around its hometown.The Company also announced a settlement of its lawsuit against 3M Company. Under the terms of the settlement, 3M is making a lump sum financial contribution of $55 million towards Wolverine’s efforts to address PFAS remediation under the Consent Decree.“We have been committed from the very beginning to being part of comprehensive water quality solutions for the community Wolverine has called home for nearly 140 years,” said Blake W. Krueger, Chairman, Chief Executive Officer, and President of Wolverine Worldwide. “We are pleased the Court has approved this Consent Decree that provides a structure for our work to continue, and also pleased that 3M is contributing towards our efforts.”Wolverine’s Comprehensive Action PlanThe Consent Decree represents a comprehensive approach to addressing PFAS that is the first of its kind in the State of Michigan and, as stated in Judge Neff’s order, was reached in “record time” and is “in the best interests of the affected homeowners, the surrounding communities, and the state of Michigan.”The Consent Decree builds on the Company’s extensive work to-date addressing PFAS and sets forth a comprehensive action plan for the future. This plan includes Wolverine providing $69.5 million over a multi-year period towards the extension of Plainfield Township’s municipal water system to more than 1,000 properties in Algoma and Plainfield Townships, including all hookup and connection fees that homeowners typically pay on their own.In addition, the Consent Decree includes continued maintenance of highly-effective water filters and resampling of certain residential wells for PFAS. The plan also provides for ongoing remediation at the Company’s former tannery and House Street sites, and investigations to further assess the presence of PFAS in area groundwater.Financial Impact of Litigation SettlementsBased on the final Consent Decree and 3M settlement, the Company recorded net costs of $58 million in the fourth quarter of fiscal 2019. This is comprised of $113 million for incremental environmental investigation and remediation costs (including the $69.5 million referenced above for municipal water), partially offset by the $55 million recovery from 3M that will be paid in a lump sum in fiscal 2020. The environmental costs discussed are estimates, and actual amounts could differ significantly in the future as circumstances evolve.Consent Decree Expected to have Significant, Beneficial Impact on LitigationWolverine continues to vigorously defend itself against litigation filed by some area residents. These plaintiffs and their attorneys played no role in developing the municipal water solution or other remediation actions approved in the Consent Decree, but they will benefit from what Judge Neff called “expedient and expansive relief for affected homeowners and the community.” As a result, Wolverine believes its actions will have a significant and beneficial impact on the resolution of these lawsuits.Finally, Wolverine continues to vigorously pursue recoveries in court from its insurers, who played no role in the Consent Decree, and have yet to honor the policies they issued to Wolverine.For More InformationFor additional details on the comprehensive plan in the Consent Decree and actions it includes, please see the attached map and frequently asked questions. Please also visit the Company’s blog, www.WeAreWolverine.com, for a copy of the Consent Decree, a copy of Judge Neff’s Order approving the Consent Decree, and for additional updates regarding Wolverine’s efforts on behalf of the community. ABOUT WOLVERINE WORLDWIDEWith a commitment to service and product excellence, Wolverine World Wide, Inc. is one of the world’s leading marketers and licensors of branded casual, active lifestyle, work, outdoor sport, athletic, children’s and uniform footwear and apparel. The Company’s portfolio of highly recognized brands includes: Merrell®, Sperry®, Hush Puppies®, Saucony®, Wolverine®, Keds®, Stride Rite®, Chaco®, Bates®, and HYTEST®. The Company also is the global footwear licensee of the popular brands Cat® and Harley-Davidson®. The Company’s products are carried by leading retailers in the U.S. and globally in approximately 170 countries and territories. For additional information, please visit our website, wolverineworldwide.com.FORWARD-LOOKING STATEMENTS
This press release and the attached frequently asked questions contain forward-looking statements, including statements regarding: the incremental environmental remediation costs the Company expects to accrue; the timing of the actions to be taken, and related costs to be incurred under such Consent Decree and the impact of such actions and costs. In addition, words such as “believes,” “step,” “plans,” “predicts,” “is likely,” “expects,” “will,” variations of such words, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future events and involve certain risks, uncertainties, and assumptions (“Risk Factors”) that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Risk Factors include, among others: the impact of regulation, regulatory and legal proceedings and legal compliance risks, including compliance with federal, state and local laws and regulations relating to the protection of the environment, environmental remediation and other related costs, and litigation or other legal proceedings relating to the protection of the environment or environmental effects on human health; and additional factors discussed in the Company’s reports filed with the Securities and Exchange Commission and exhibits thereto. The foregoing Risk Factors, as well as other existing Risk Factors and new Risk Factors that emerge from time to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these or other risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements.SOURCE: Wolverine Worldwide
Frequently Asked Questions – February 20, 2020
Why did Wolverine enter into this Consent Decree?This Consent Decree represents a significant next phase in Wolverine’s ongoing efforts to address PFAS. We believe these steps provide continued benefits to the community, the Company, and its shareholders, which include:Significant investments to ensure long-term water quality for the community, including an extension of municipal water as soon as possible, contributions towards Plainfield Township’s municipal water filtration system and a new wellfield, investigation and remediation plans at Wolverine’s House Street and former Tannery sites, and ongoing groundwater testing and monitoring;
A resolution of the lawsuit between Wolverine, the State of Michigan, Plainfield Charter Township, and Algoma Township; and
A significant, beneficial impact on the individual and class action lawsuits pending against Wolverine.What is included in Consent Decree?The Consent Decree provides a comprehensive framework to address the presence of PFAS in area groundwater, including an extension of municipal water to more than 1,000 properties, contributions toward Plainfield Township’s municipal water filtration system and a new wellfield, investigation and remediation plans at Wolverine’s House Street and former tannery sites, ongoing groundwater testing and monitoring, and other investments by Wolverine to ensure long-term water quality for the community.Who will be receiving municipal water?More than 1,000 properties in Plainfield Township and Algoma Township will be connected to Plainfield Township’s municipal water system over a period of at least five years. These properties are shown on the attached map, and residents with questions about eligibility can contact Plainfield Township at www.plainfieldmi.org.
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