3M to pay $6 billion as Combat Arms Earplug settlement nears final resolution

By Tomi Kilgore

Payments will be made through 2029 to resolve the litigation

3M Co. said Tuesday the Combat Arms Earplug litigation is nearing its final resolution, with the consumer, industrial and healthcare-products company agreeing to pay up to $6 billion to settle all claims.

The settlement is the final chapter of a fight that's been going on for years, in which the maker of Post-it Notes, Scotch tape and N95 masks was sued by hundreds of thousands of plaintiffs who said the 3M earplugs caused hearing loss.

On Tuesday, 3M (MMM) said that, out of 293,000 claims, more than 249,000 claimants have registered to participate. More than 41,000 claims were dismissed by courts. Once all the settlement registrations have been submitted, 3M believes the settlement will achieve a more than 99.9% participation level.

3M said it will make its payments between 2023 to 2029. On a pre-tax, present-value basis, the settlement is valued at $5.3 billion, which the company has already recorded reserves.

The stock was little changed in premarket trading.

3M and Aearo, the company 3M acquired in 2008 that made the earplugs, are "actively engaged" in insurance-recovery activities to offset part of the settlement payments.

3M's stock has fallen 4.1% year to date, while the Dow Jones Industrial Average has gained 4.3%.

-Tomi Kilgore

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03-26-24 0751ET

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