3M Arrives At $5.5B Settlement Over Its Faulty Military Earplugs: Report
Portfolio Pulse from Shivani Kumaresan
3M Co has agreed to pay over $5.5 billion to settle more than 300,000 lawsuits accusing it of selling defective combat earplugs to the U.S. military. The settlement amount is about half of the $10 billion the company could have ended up paying. The lawsuits accused 3M of deliberately failing to warn the U.S. government or users despite knowing the earplugs were too short to work optimally. The settlement will be paid out over five years.
August 28, 2023 | 9:58 am
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POSITIVE IMPACT
3M's settlement of $5.5 billion over defective military earplugs lawsuits is likely to reduce its financial liability and bring an end to a long-standing legal issue.
The settlement reduces 3M's potential liability by about half, which is likely to be viewed positively by investors. The resolution of the lawsuits also removes a significant legal risk for the company.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Barclays had estimated 3M's potential liability at $8 billion, which is higher than the agreed settlement.
Barclays' estimate of 3M's liability was higher than the actual settlement, but this news does not directly impact Barclays.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50