Kimberly-Clark Settles Safeskin Litigation DALLAS, December 26, 2002 -- Kimberly-Clark Corporation (NYSE: KMB) today announced that its wholly-owned subsidiary, Safeskin Corporation, and certain former officers and directors of Safeskin have agreed to settle previously disclosed securities and shareholder derivative litigation. Under the terms of the settlement, all claims against Safeskin and all other defendants in these litigation matters will be dismissed without admission of liability or wrongdoing by any party. The settlement of the two actions is subject to notice to class members and court approval.
Kimberly-Clark acquired Safeskin, a leading manufacturer of disposable medical examination gloves and related products, in February 2000. The lawsuits relate to events occurring before the acquisition. The settlement brings to an end all securities and shareholder derivative suits relating to Safeskin and avoids the expense and uncertainty of further litigation.
The total amount paid in settlement of both the lawsuits is $55 million, most of which is covered by insurance. Kimberly-Clark will record a pre-tax charge of approximately $21 million, or $.03 per share, as an unusual item in the fourth quarter of 2002. The charge includes legal defense and insurance costs and the uninsured portion of the settlement.
About Kimberly-Clark
Kimberly-Clark Corporation is a leading global consumer products company. Its tissue, personal care and health care products are manufactured in 42 countries and sold in more than 150. Kimberly-Clark is home to some of the world's most trusted and recognized brands, including Kleenex, Scott, Huggies, Pull-Ups, Kotex, and Depend. Nearly one-quarter of the world's population, or 1.3 billion people, use Kimberly-Clark products each year. Kimberly-Clark has been among Fortune magazine's "Most Admired" corporations since 1983 and was recently named to its list of "100 Best Companies to Work For." For more information about Kimberly-Clark's well-known brands, visit the Kimberly-Clark Web site at www.kimberly-clark.com.
This news release may contain certain statements that are forward looking and these statements are based on current expectations that are subject to risks and uncertainties, including whether the requisite judicial approval of the settlement will be obtained. A discussion of a number of important factors and assumptions regarding these statements is contained in the Company's most recent filings with the Securities Exchange Commission and also in the Company's Form 10-Q for the quarterly period ended September 30, 2002. For a description of the securities and shareholder derivative litigation mentioned above, see Management's Discussion and Analysis of Contingencies and Legal Matters contained in Kimberly-Clark's Annual Report on Form 10-K for the year ended December 31, 2001, and the accompanying Notes to the Consolidated Financial Statements, Note 12 ("Contingencies and Legal Matters"), paragraphs 3 and 4.
Kimberly-Clark acquired Safeskin, a leading manufacturer of disposable medical examination gloves and related products, in February 2000. The lawsuits relate to events occurring before the acquisition. The settlement brings to an end all securities and shareholder derivative suits relating to Safeskin and avoids the expense and uncertainty of further litigation.
The total amount paid in settlement of both the lawsuits is $55 million, most of which is covered by insurance. Kimberly-Clark will record a pre-tax charge of approximately $21 million, or $.03 per share, as an unusual item in the fourth quarter of 2002. The charge includes legal defense and insurance costs and the uninsured portion of the settlement.
About Kimberly-Clark
Kimberly-Clark Corporation is a leading global consumer products company. Its tissue, personal care and health care products are manufactured in 42 countries and sold in more than 150. Kimberly-Clark is home to some of the world's most trusted and recognized brands, including Kleenex, Scott, Huggies, Pull-Ups, Kotex, and Depend. Nearly one-quarter of the world's population, or 1.3 billion people, use Kimberly-Clark products each year. Kimberly-Clark has been among Fortune magazine's "Most Admired" corporations since 1983 and was recently named to its list of "100 Best Companies to Work For." For more information about Kimberly-Clark's well-known brands, visit the Kimberly-Clark Web site at www.kimberly-clark.com.
This news release may contain certain statements that are forward looking and these statements are based on current expectations that are subject to risks and uncertainties, including whether the requisite judicial approval of the settlement will be obtained. A discussion of a number of important factors and assumptions regarding these statements is contained in the Company's most recent filings with the Securities Exchange Commission and also in the Company's Form 10-Q for the quarterly period ended September 30, 2002. For a description of the securities and shareholder derivative litigation mentioned above, see Management's Discussion and Analysis of Contingencies and Legal Matters contained in Kimberly-Clark's Annual Report on Form 10-K for the year ended December 31, 2001, and the accompanying Notes to the Consolidated Financial Statements, Note 12 ("Contingencies and Legal Matters"), paragraphs 3 and 4.