3M Co. is reportedly nearing a $5.5 billion settlement in relation to defective combat earplugs, as reported on Sunday. The company is close to resolving more than 300,000 lawsuits related to earplugs that failed to adequately protect military veterans from hearing loss.
Experts had predicted that 3M could be held liable for approximately $10 billion, so the proposed settlement of $5.5 billion is considerably lower than anticipated. This case has become the largest mass tort in U.S. history.
In July 2022, 3M’s subsidiary Aearo Technologies filed for bankruptcy in an effort to address the litigation it faced. The settlement proposal has yet to be voted on by 3M’s board, according to the Wall Street Journal.
Despite this ongoing legal battle, 3M reported better-than-expected adjusted quarterly profit in July. This was partly due to a $10.3 billion charge for a proposed settlement regarding “forever chemicals” found in drinking water.
Year to date, 3M shares have fallen by 17%, while the S&P 500 has experienced a 15% gain.
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