3M to Pay $6 Billion Following US Military Claims of Defective Earplugs Causing Hearing Loss

**3M Agrees to $6 Billion Settlement Over Faulty Earplugs**

In a significant legal development, manufacturing giant 3M has agreed to pay $6 billion to settle approximately 300,000 lawsuits. The lawsuits alleged that the company supplied the military with defective combat earplugs, leading to serious injuries, such as hearing loss. The agreement, however, is not an admission of liability by 3M.

**Settlement Details and Company Statement**

In a [press release](https://news.3m.com/2023-08-29-3M-Announces-Combat-Arms-Settlement,1), 3M clarified that the settlement amount would be paid over several years, including $5 billion in cash and $1 billion in 3M stock. The company asserted that the products involved in the litigation are safe and effective when used correctly. It further stated that it is prepared to continue defending itself if the agreed terms of the settlement are not fulfilled.

**Use of Defective Earplugs by the US Military**

The earplugs at the center of the controversy were used by the US military in both training and combat scenarios between 2003 and 2015. Veterans accused 3M of selling defective earplugs that resulted in hearing loss and tinnitus, as per a [2021 report by The Wall Street Journal](https://www.wsj.com/articles/3m-military-earplugs-blamed-for-hearing-loss-in-largest-set-of-u-s-suits-11617969601?mod=article_inline).

**The Role of Aearo Technologies**

The earplugs were originally manufactured by Aearo Technologies, a company that 3M acquired in 2008. Aearo attempted to file for bankruptcy last year to manage its liabilities and limit exposure. However, this move was dismissed by a judge this summer due to the company’s overall financial health.

**Impact on 3M’s Financials**

3M anticipates that the settlement will result in a pre-tax charge of approximately $4.2 billion for the third quarter of 2023. Despite this, shares of 3M closed 5% higher on Monday as investors were expecting a significantly higher settlement amount, according to [The Wall Street Journal](https://www.wsj.com/business/3m-board-approves-6-billion-earplug-settlement-26a3038f).

**Second Major Settlement for 3M**

This marks the second major legal settlement for 3M this summer. In June, the company agreed to pay up to $10.3 billion over 13 years to fund public water suppliers in the United States that have detected toxic “forever chemicals” in their water supplies. These chemicals, [Polyfluoroalkyl and perfluoroalkyl substances (PFAS)](https://www.cnn.com/2023/07/05/health/pfas-nearly-half-us-tap-water-wellness/index.html), have been found in numerous household items and are known to cause cancer, developmental defects, and other health issues.

**Future Actions by 3M**

Following thousands of lawsuits alleging that 3M was aware of the health risks posed by PFAS, the company announced last year that it would stop producing these controversial chemicals by the end of 2025.

Original Story at www.cnn.com – 2023-08-29 16:09:00