3M to Pay $6 Billion in Cash And Stock to Settle Earplug Suits
29 August 2023 - 9:19PM
Dow Jones News
By Will Feuer
3M has agreed to pay $6 billion in a combination of cash and
stock through 2029 to settle allegations that its Aearo
Technologies subsidiary made faulty earplugs for the U.S. military
that failed to protect soldiers' hearing.
3M said it will pay $5 billion in cash and $1 billion in stock
between 2023 and 2029 to settle the allegations, confirming an
earlier report from The Wall Street Journal, which said the
company's board had approved a $6 billion, multi-year
settlement.
The manufacturing conglomerate said its settlement is not an
admission of liability. "The products at issue in this litigation
are safe and effective when used properly," 3M said.
The company will book a pre-tax charge of $4.2 billion in the
third quarter. 3M said it is seeking insurance recovery to offset
some of the settlement payments. Aearo, a company 3M bought in
2008, is suing its insurance carriers related to the
litigation.
3M said it will hold a conference call at 9 a.m. ET.
In a statement, lawyers for the veterans who have sued 3M said
they are proud to have obtained the settlement. "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," they said.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
August 29, 2023 07:04 ET (11:04 GMT)
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