3M Agrees to Settle Earplug Cases for $6B

3M has agreed to pay approximately $6 billion to settle lawsuits brought by servicemembers who used earplugs supplied by the company.  Plaintiffs alleged the earplugs were defective and they suffered hearing damage as a result.  The cases were consolidated as an MDL in Florida, and plaintiffs have won 10 of the 16 trials so far.  3M reached the agreement after failing to have the cases moved to bankruptcy court earlier this year.

There are approximately 240,000 people expected to be eligible for the settlement; 98% of them must agree to accept the settlement or 3M will not be bound by it.  Payments will be made from 2023 through 2029, and $1 billion will be in the form of 3M stock.  3M shares have gone up after the settlement was announced; some analysts had estimated 3M's potential liability at $10 billion.  Brendan Pierson at Reuters has the story.

Yesterday Judge M. Casey Rogers ordered plaintiffs' lawyers to disclose outside funding deals, indicating concern about third-party litigation funding.  Emily Siegel at Bloomberg has the story.