3M Co.’s stock was up 0.8% in premarket trade Tuesday after it agreed to pay up to $1 billion in stock and $5 billion in cash until 2029 to settle claims it sold potentially faulty ear protection to the U.S. military.
The $6 billion in total that 3M pledged to spend on the settlement is lower than the $10 billion to $15 billion expected by some analysts, The Wall Street Journal reported.
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said the legal action against it and Aearo Technologies, a company it acquired in 2008, “is not an admission of liability” over its Combat Arms Earplug product.
“The products at issue in this litigation are safe and effective when used properly,” 3M said.
The lawsuits alleged that tens of thousands of people suffered from hearing loss and tinnitus, said lawyers for the plaintiffs, in a statement.
“This historic agreement represents a tremendous victory for the thousands of men and women who bravely served our country and returned home with life-altering hearing injuries,” said Bryan F. Aylstock, the lead counsel for the plaintiffs. The plaintiff lawyers in the case said more information will be available on the settlement at www.3mearplugmdl.com.
The settlement covers all claims in the multi-district litigation in Florida and Minnesota, as well as potential future claims, 3M said.
Courts in Florida and Minnesota are ordering implementation of the agreement in the case, the company said.
The earplug lawsuit has made its mark in the legal world as the largest single mass tort in U.S. history, the WSJ reported.
The suit drew more claims than any single company in the past including class-action lawsuits around opioid sales, wildfires and asbestos, the WSJ report said.
The law firms that worked on the settlement include Aylstock, Witkin, Kreis & Overholtz PLLC, Seeger Weiss LLP and Clayton Clark of Clark, Love & Hutson, PLLC.
The legal fight around the earplugs included four years of litigation and 16 trials. The plaintiffs alleged that 3M sold defective CAEv2 earplugs from 1999 to 2015 to the U.S. military.
The settlement also marks another major payout by 3M this year after it agreed in June to pay up to $12.5 billion to settle litigation surrounding drinking water contamination from PFAS chemicals, also called forever chemicals.
Also read: 3M stock rallies after $10.3 billion ‘forever chemical’ settlement offered
