Sotera Health to pay $408 million to settlement allegations in Illinois

Shares of Sotera Health Co.
SHC,
+102.20%
soared 57% in premarket trading on Tuesday after the company said it will pay $408 million to settle more than 870 million legal cases in Illinois. Sotera owns Sterigenics, a medical sterilization company that is accused of running an industrial plant in Willowbrook, Ill., that emitted ethylene oxide pollution that, in turn, gave people cancer, according to media outlets. The companies have denied any wrongdoing. Sterigenics will fund an escrow account with the settlement by May 1. The company also told investors that it will record a $408 million settlement for 2022. Sotera’s stock has plunged 60.1% over the past year, while the broader S&P 500
SPX,
+0.07%
is down 16.8%.