3M, Aearo reach $6 billion Combat Arms Earplug settlement

By Sarah Lizee

Olympia, Wash., Aug. 29 – 3M and subsidiary Aearo Technologies have reached an agreement to resolve the Combat Arms Earplug litigation against Aearo and 3M, according to a press release issued Tuesday by 3M.

Under the agreement, 3M will contribute a total amount of $6 billion between 2023 and 2029, which is structured under the agreement to include $5 billion in cash and $1 billion in 3M common stock.

The agreement, reached through a mediation process, is structured to promote participation by claimants and is intended to resolve all claims associated with the Combat Arms Earplug products, 3M said.

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 said.

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 previously reported, Aearo had its Chapter 11 bankruptcy cases dismissed by the U.S. Bankruptcy Court for the Southern District of Indiana in June.

After holding a five-day evidentiary hearing that started on April 19 on motions to dismiss the case, judge Jeffrey J. Graham said the court cannot conclude that the Aearo entities’ cases serve a valid reorganization purpose, as the debtors have been and continue to be financially healthy.

As background, on April 3, 2019, about 700 lawsuits related to Aearo’s Combat Arms Version 2 earplugs (CAEv2) were consolidated into multidistrict litigation in the U.S. District Court for the Northern District of Florida.

The multidistrict litigation is the largest in history, with around 255,500 active cases. This represents 30% of all cases currently pending in the federal district courts.

Aearo, the St. Paul-based 3M subsidiary, designs and manufactures materials for noise, vibration, shock, thermal and cushioning solutions for commercial vehicles, heavy equipment, medical equipment, electronics and aircraft. The company filed bankruptcy on July 26, 2022 under Chapter 11 case number 22-02890.

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