After a $6 billion settlement, announced in August 2023, 3M has started sending payments. 3M announced earlier this week that they have begun sending out approximately $250 million in payments to both veterans and service members.
The payments are the result of the resolution of nearly 300,000 lawsuits alleging that the manufacturing company supplied faulty earplugs to the military that resulted in injuries, such as hearing loss.
In a statement, posted on the 3M website, the company stated that the settlement has gained widespread and strong support from ‘claimants and the broader military community’.
“This support has helped the parties and the courts reach the next milestone set forth in the agreement toward full implementation of the settlement”, the 3M announcement continues.
The amount being paid to each claimant is unknown, but more than 30,000 have agreed to the lawsuit so far. The payouts are expected to occur over the next several years. The total settlement value is calculated at $5 billion in cash and $1 billion in stock.
According to 3M, the settlement is “not an admission of liability”.
“The products at issue in this litigation are safe and effective when used properly. 3M is prepared to continue to defend itself in the litigation if certain agreed terms of the settlement agreement are not fulfilled,” the company said.
The product in dispute is the black-and-yellow earplugs that were distributed and used by the U.S. military during training and combat from 2003 to 2015. According to a report by the Wall Street Journal in 2021, 3M was accused by veterans of selling defective earplugs that resulted in hearing loss.
Aearo Technologies, bought by 3M in 2008, were the producers of the earplugs that are now the subject of the lawsuits.
In 2022, Aearo attempted to file for bankruptcy. However, in the summer of 2023, a judge dismissed that move, later stating, “allowing an otherwise financially healthy debtor with no impending solvency issues to remain in bankruptcy, much less one whose liability for most of its debts is supported by an even more financially healthy, Fortune 500 multinational conglomerate, exceeds the boundaries of the Court’s limited jurisdiction.”
For more information on the settlement, an information page has been established for claimants here.
