3M Will Pay $6B To Veterans In Faulty Earplugs Suit

3M Will Pay $6B To Veterans In Faulty Earplugs Suit

Introduction

Manufacturer of chemicals and consumer goods 3M said that it has agreed to pay $6 billion to resolve claims filed by U.S. military members that the company's defective earplugs caused them to suffer hearing loss or other severe ailments.

Payments for the settlement, which consists of $5 billion in cash and $1 billion in 3M shares, will be made over the course of 2029.

Aearo Technologies, a business that 3M bought in 2008, and 3M have both been sued by hundreds of thousands of veterans and active duty service personnel for its Combat Arms Earplugs. According to the law firms representing plaintiffs, the military personnel claimed that a flawed design caused the items meant to protect ears from close-range guns and other loud noises to loosen slightly and enable hearing impairment.

The Florida-based legal firm states that 3M previously agreed to pay $9.1 million to resolve a complaint on behalf of the government alleging the business willfully provided faulty earplugs to the U.S. military in an online description of the action. Additionally, the company stated that since 2019, 3M has lost 10 of the 16 claims that have gone to trial, giving plaintiffs millions of dollars so far.

The plaintiffs' attorneys stated in a joint statement that the latest settlement constitutes a significant win for the thousands of men and women who heroically served our nation and returned home with life-altering hearing damage.

The deal, which covers all claims in the multidistrict lawsuit in Florida, coordinated state court litigation in Minnesota, and possible future claims, was not an admission of culpability, according to 3M's statement.

When used properly, the items at issue in this lawsuit are safe and effective, the manufacturer said. If some agreed-upon conditions of the settlement agreement are not met, 3M is ready to continue defending itself in the lawsuit.  

Through bankruptcy court, 3M has already attempted to lessen its exposure to the earplug case. Aearo filed for bankruptcy in 2022 as a distinct business, taking liability for claims; however, the application was later rejected in a bankruptcy court in the United States.

In addition to the earplug case, 3M agreed in June to pay at least $10.3 billion to resolve claims that numerous U.S. public drinking water systems were contaminated with potentially dangerous substances. With this agreement, water suppliers will get compensation for contamination caused by per- and polyfluorinated compounds, sometimes referred to as "forever chemicals."

The settlement amount might total $12.5 billion, although the arrangement hasn't been finalized yet. 22 solicitors general urged a federal court to reject the proposed settlement last month, arguing that it let 3M off too easily and that it didn't give individual water suppliers enough time to decide how much money they would receive. In some cases, they claimed, the deal could shift liability from the company to providers and that it didn't give water suppliers enough time to decide how much money they would receive.

According to the New York Attorney General, 3M consented to significantly alter the terms of the settlement. These modifications, which are reflected in a proposed court order, include extending the time period during which qualifying water systems must review the deal and eliminating uncapped indemnification in 3M's favor.

The judge gave the arrangement preliminary approval, according to court documents. The deal will benefit U.S.-based public water systems nationwide that provide drinking water to the vast majority of Americans without the need for additional litigation by or on behalf of public water systems, according to a spokesperson for 3M. The company was pleased to have to clarify the agreement and see the attorneys general objections withdrawn; the spokesperson added.

Although these arguments were dropped, five solicitors general nevertheless submitted an amicus curiae letter raising issues with the settlement payment's size and timing.