3M Nears Roughly $5.5 Billion Earplugs Settlement

livemint.com:

3M and plaintiffs attorneys are nearing a settlement that would resolve hundreds of thousands of claims by veterans that earplugs made by the company and a subsidiary failed to protect them from hearing loss. Under the terms being discussed, 3M would pay about $5.5 billion, people close to the discussions said. Negotiations are continuing, they said, and the final amount hasn’t been established yet.

The 3M board hasn’t yet voted on a proposal to settle the case, the people said. The earplug litigation has become the largest mass tort in U.S. history, with more than 300,000 claims.

Veterans allege that 3M and Aearo Technologies, a company 3M acquired in 2008, produced faulty earplugs that failed to protect their hearing from noise damage when issued to them by the U.S. military. 3M is contesting the cases, and has said the earplugs work correctly when used with proper training.

The settlement amount being considered is substantially less than the $10 billion to $15 billion that some analysts have predicted the case would cost 3M. The possible settlement was earlier reported by Bloomberg News. 3M’s ability to absorb a huge earplug settlement has been diminished by a tentative settlement in June for litigation over so-called forever chemicals in municipal drinking water.

That agreement between 3M and municipal water providers, which still needs court approval, could cost 3M as much as $12.5 billion over 13 years. The earplugs, which were developed by Aearo Technologies, were designed to protect users’ hearing from loud noises such as explosions, but permit voices or softer noises to be heard. 3M agreed in 2018 to pay $9.1 million to the U.S.