Veterans Ask Court To Reject 3M's Bankruptcy Plea

Veterans Ask Court To Reject 3M's Bankruptcy Plea

Introduction

Veterans and military personnel in the United States have asked a judge to reject 3M's attempt to use the bankruptcy of its subsidiary Aearo Technologies as a defence against roughly 260,000 claims using earplugs provided as part of the military, which former users claim are faulty and harm their hearing.

The earplug lawsuit, according to 3M and Aearo, has gotten out of hand. However, the lawyer representing the veterans suing 3M for hearing loss stated at a court proceeding in Indianapolis that declaring bankruptcy, like sounding a fire alarm, should only be done in response to serious dangers. Aearo didn't require immediate assistance because it had just filed for bankruptcy as a tactical substitute for dealing with 3M's legal issues.

The company that produced the earplugs for combat guns, Aearo, filed for bankruptcy in July, and 3M pledged $1 billion to cover the company's obligations resulting from lawsuits alleging that both Aearo and 3M misrepresented the earplugs' efficiency, causing hearing impairment.

Following a string of unfavorable court decisions and trial defeats, the plaintiffs have characterized that action as an attempt to leave the Florida federal court where the earplug complaints are combined in so-called multidistrict litigation. According to the company's counsel, Aearo should be permitted to use a bankruptcy settlement to proactively address the mounting issue of earplug claims.

Before deciding whether to dismiss the lawsuit, U.S. Bankruptcy Judge will continue to hear testimony. The decision by 3M to file for bankruptcy, along with a comparable move by Johnson & Johnson, has sparked both support and criticism, leading to a discussion over whether bankruptcy is the best course of action for financially sound businesses facing severe lawsuits.

According to court records, the action against 3M and Aearo has the most cases filed (almost 330,000) and pending (about 260,000), of any multidistrict litigation in U.S. history. In the 16 cases that have gone to trial so far, 3M has lost 10, and 13 plaintiffs have received a total award of nearly $265 million.