Bloomberg News

3M Sues Porton Capital Inc., CEO Boulter Over ‘Blackmail’

June 20, 2011

(Updates with excerpt from complaint in third paragraph.)

June 20 (Bloomberg) -- 3M Co., the maker of Scotch tape, sued Porton Capital Inc. and its chief executive officer, Harvey Boulter, in New York state court, accusing them of trying to extort $30 million in connection with 3M’s purchase of a medical technology company.

The trial of a lawsuit against 3M by Porton began June 15 in London and is expected to continue into July, St. Paul, Minnesota-based 3M said yesterday in a New York State Supreme Court filing.

“Instead of awaiting the outcome of the pending litigation, defendants and their investors have engaged in an unlawful campaign to blackmail 3M into paying $30 million in order to avoid the continuation of the campaign,” the company said in its complaint.

The trial centers on 3M’s acquisition from Porton and other investors of Acolyte Biomedica Ltd., which was developing products to detect microorganisms, according to the complaint.

Porton Capital Technology Fund, also named as a defendant, didn’t immediately respond to an e-mail message seeking comment.

“Defendants seek to publicly defame 3M and its chairman/CEO,” 3M said in the lawsuit. George W. Buckley is the chairman and chief executive officer.

3M rose 71 cents to $92.49 at 11:41 a.m. in New York Stock Exchange composite trading.

The case is 3M Co. v. Boulter, 651708/2011, Supreme Court of the State of New York (New York County).

--Editors: Charles Carter, Glenn Holdcraft

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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