As part of its $6 billion settlement, 3M has started sending payments to resolve almost 300,000 lawsuits alleging that the manufacturing company supplied faulty combat earplugs to the military that resulted in significant injuries, such as hearing loss. The company announced earlier this week that it has begun sending payments to service U.S. service members and veterans.
According to CNN Business, more than 30,000 have agreed to the lawsuit so far. However, it's unclear how much money each individual claimant will receive. A website has been set up for claimants for more information.
3M has reiterated that the settlement is "not an admission of liability" and that the payout will come over several years and encompass $5 billion in cash and $1 billion in stock.
"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.
Aearo Technologies, a company 3M bought in 2008, designed the earplugs. Aearo tried filing for bankruptcy in 2022 to fund its liabilities and limit exposure. However, that move was dismissed by a judge last summer, who said that "allowing an otherwise financially healthy debtor with no impending solvency issues to remain in bankruptcy ... exceeds the boundaries of the court's limited jurisdiction."
The Associated Press revealed that Aearo Technologies made a $250 million payment to the qualified settlement fund on Dec. 26, expected to result in 25,000 to 30,000 claimants dismissing associated litigation. And on Monday, 3M said it was accelerating another payment of $253 million to settle "wave" cases by Jan. 31.
"All the remaining 'wave' plaintiffs, whose claims were being prepared for trial before the settlement agreement, have now agreed to participate in the settlement and release their claims," 3M said.
Aearo and 3M said they will "continue to work with all parties and the courts toward full implementation of the settlement agreement and will provide updates as additional milestones are reached."
Before this settlement, 3M agreed to pay $9.1 million in 2018 to settle a lawsuit on behalf of the government alleging the company knowingly supplied defective earplugs to the U.S. military. There was no determination of liability in the agreement.
