Sotera Health To Pay $408 Mln To Settle Ethylene Oxide Litigation In Illinois; Stock Surges

(RTTNews) - Sotera Health Co. (SHC) said that it agreed to pay $408 million to settle the more than 870 ethylene oxide cases pending against its subsidiary, Sterigenics, in the Circuit Court of Cook County, Illinois, and US District Court for the Northern District of Illinois. The settlement explicitly does not constitute admission of liability.

SHC closed Monday regular trading at $8.64 up $0.18 or 2.13%. In the after-hours trade, the stock further gained $6.11 or 70.72%.

The administration and completion of the settlement agreements is expected to require up to 90 - 120 days.

The company noted that it will pursue incremental debt financing in the first half of 2023 to fund a significant portion of the settlement payment. The company will record a charge for the $408 million settlement for the year ended 2022.