3M Co (NYSE: MMM) has agreed to pay $6.01 billion settlement to resolve nearly 260,000 lawsuits by current and former US military service members.
The plaintiffs said they suffered hearing loss from using the company’s earplugs but 3M argued that the earplugs work correctly with proper training.
The money will be paid out mostly over the next five years, according to a report by Reuters.
This settlement comes just two months after the company announced a tentative $10.3 billion deal with a host of U.S. public water systems to resolve claims of water pollution by per- and polyfluoroalkyl substances, or PFAS, known as “forever chemicals.”
22 U.S. states and territories are seeking to block the agreement which they say does not adequately hold the company accountable.
The lawsuits were consolidated before U.S. District Judge M. Casey Rodgers in Pensacola, Florida federal court in 2019.
Aearo Technologies, a company 3M acquired in 2008 made the Combat Arms earplugs.
They were used by the U.S. military in training and combat from 2003 to 2015, including in Afghanistan and Iraq.
In July 2022, Aearo filed for bankruptcy with 3M pledging $1 billion to fund its liabilities stemming from the earplug lawsuits.
However, in June, the bankruptcy was dismissed by a bankruptcy judge in Indianapolis as Aearo was not in enough financial distress to justify it.
Aearo plans to appeal the judgement, according to WSJ.
The lawsuits were consolidated before U.S. District Judge M. Casey Rodgers in Pensacola, Florida federal court in 2019.
3Mhas lost 10 out of 16 earplug cases that have gone to trial, with about $265 million being awarded in total to 13 plaintiffs.
Aearo filed for bankruptcy in July 2022, with 3M pledging $1 billion to fund its liabilities stemming from the earplug lawsuits.
However, a bankruptcy judge in June dismissed the bankruptcy, finding that Aearo was not in enough financial distress to justify it.
3M shares rose 5.3% to $104.14 on Monday but its stock is still 13% lower this year through Monday’s close.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
