3M To Pay $6.0 Bln To Resolve Combat Arms Earplug Litigation

(RTTNews) - 3M Co. (MMM) has agreed to pay $6.0 billion to resolve the Combat Arms Earplug litigation against Aearo Technologies and the company.

As per the agreement, 3M will contribute the settlement amount between 2023 and 2029, which is structured under the agreement to include $5.0 billion in cash and $1.0 billion in 3M common stock.

The agreement includes all claims in the multi-district litigation in Florida and in the coordinated state court action in Minnesota, as well as potential future claims. The Florida and Minnesota courts are entering orders to support implementation of the agreement.

3M noted that the agreement is not an admission of liability. The products at issue in the litigation are safe and effective when used properly.

3M said it is prepared to continue to defend itself in the litigation if certain agreed terms of the settlement agreement are not fulfilled.

As a result of the agreement, the company will record a pre-tax charge of about $4.2 billion in the third quarter of 2023.

Last week, there were reports that 3M reached a tentative $5.5 billion settlement to resolve over 300,000 lawsuits regarding defective military combat earplugs.