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3M to settle with US veterans at $6bln over faulty earplugs lawsuit

  • By Al Mayadeen English
  • Source: News websites
  • 29 Aug 2023 18:20
3 Min Read

The settlement stipulates a total amount of $6.0 billion between 2023 and 2029, structured as per the agreement to include "$5.0 billion in cash and $1.0 billion in 3M common stock."

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  • In this Aug. 29, 2019 photo, the 3M corporate logo stands atop the headquarters of the Minnesota-based company in Maplewood, Minn. (AP )
    In this Aug. 29, 2019 photo, the 3M corporate logo stands atop the headquarters of the Minnesota-based company in Maplewood, Minn. (AP)

The manufacturer, 3M, said on Tuesday that it had struck a $6 billion settlement with US military veterans who claimed that their earplugs were defective and did not protect the hearing capabilities of their ears.

According to an official statement released by the company, the mediated agreement dictates that 3M "contribute a total amount of $6.0 billion between 2023 and 2029, which is structured under the agreement to include $5.0 billion in cash and $1.0 billion in 3M common stock."

Between 2003 and 2015, Aearo Technologies, which was acquired by 3M earlier in 2008, sold the earplugs to the US military. 

Over the years, US veterans complained, reportedly, that the earplugs were faulty and that they failed to protect their hearing. However, despite the long-running legal saga, which affected the company in various ways, 3M refused to admit liability for the products, and argued that its products "are safe and effective when used properly."

Moreover, the company said it was prepared to "continue to defend itself in the litigation if certain agreed terms of the settlement agreement are not fulfilled."

News of the settlement has impacted the company positively as its shares have increased by about 5% by the end of Monday.

It is worth noting that analysts have stated that they expect the settlement to be substantially larger than what was unveiled by the company.

3M gives in to $10.3bln settlement over water contamination lawsuit

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Earlier in June, the multinational conglomerate, 3M, settled a $10.3 billion mass lawsuit filed by US cities and towns impacted by contaminated water due to chemicals released from a production facility belonging to the company.

The "forever chemicals" settlement in the per-and poly-fluoroalkyl substances (PFAS) case, which polluted the region's drinking water, will be paid over 13 years.

Pollutants known as "forever chemicals" do not degrade in the environment, accumulate instead in the body, knowing that they may be toxic.

Read more: Firm discharges 800kg/year of ‘forever chemical' into Lancashire river

3M did not admit liability in the case that is yet to be approved by the country but pledged to stop using "forever chemicals" by the end of 2025 after several probes and thousands of lawsuits targeted the firm, including that from the US Environmental Protection Agency.

"If the agreement is not approved by the court or certain agreed terms are not fulfilled, 3M is prepared to continue to defend itself in the litigation," the company said in a statement.

The firm added that it will provide "funding for public water suppliers (PWS) nationwide that have detected PFAS in drinking water, as well as for eligible PWS that may detect PFAS at any level in the future."

The company was due to face trial regarding the lawsuit, but a judge approved a request to delay as disputing parties tried to settle.

Mike Roman, Chairman and CEO of 3M, called the agreement "an important step forward" that puts forward the firm's commitment to "exit all PFAS manufacturing."

Read more: 3M announces 6000 job cuts in attempt to adjust to production volumes

  • lawsuit
  • 3M
  • US veteran

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