According to sources, 3M Company (NYSE:MMM) has reached a preliminary agreement worth $5.5 billion to settle over 300,000 legal cases brought by veterans who alleged that the company sold defective combat earplugs. Following this announcement, the company’s stock surged by 5.2% at the end of trading on August 28. The $5.5 billion sum is anticipated to be disbursed over the course of the next five years. 3M has been engaged in protracted legal battles concerning its earplugs for an extended period.
Veterans contended that the combat earplugs caused hearing impairment, whereas MMM argued that the earplugs provided protection to soldiers while permitting auditory awareness on the battlefield. The combat earplugs supplied to the U.S. military were designed by 3M’s subsidiary, Aearo Technologies LLC.
In July 2022, MMM placed Aearo Technologies into bankruptcy in an attempt to safeguard itself from litigation. Typically, companies that file for bankruptcy gain some relief from legal actions. However, the U.S. court declined an initial injunction to MMM’s legal proceedings.
As per reports, 3M has been unsuccessful in 10 out of 16 trials, resulting in approximately $300 million being awarded to plaintiffs. The $5.5 billion settlement significantly exceeds the $1 billion reserved by Aearo Technologies in a trust intended for compensating veterans and resolving legal disputes.
In addition to the earplug case, 3M has been entangled in lawsuits related to the production of per- and polyfluoroalkyl substances (“PFAS”), a harmful chemical. In June, the company reached an arrangement to disburse at least $10.3 billion to settle claims with numerous public water systems (“PWS”) in the United States linked to the presence of PFAS in drinking water. As part of the settlement, 3M will allocate funding of up to $12.5 billion to PWS over a 13-year period for the purpose of detecting and treating PFAS contamination.
Following court approval, the settlement will absolve MMM from any further claims associated with the utilization of PFAS in drinking water.
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Author Faith Yakubu 
