International multi-industry conglomerate 3M announced on Monday that it will begin sending payouts to thousands of US Military veterans and service members by the end of January, a total payment of more than $250 million. These payouts are part of a much larger $6 billion settlement for a lawsuit alleging that 3M sold defective earplugs to the military, leaving combat veterans with significant hearing loss.
According to the lawsuit brought against the company more than five years ago, the 3M Dual-Ended Combat Arms Earplugs (CAEv.2s) manufactured by subsidiary Aero Technologies and supplied to the Armed Forces from 1999 to 2015 did not supply sufficient protection for the user. As a result, more than 276,000 claimants report loss of hearing, permanent tinnitus, and other related injuries after using the plugs in proximity to gunfire and heavy artillery.
Other plaintiffs sustained similar injuries in civilian professions, while using power tools, or during recreational firearm use like hunting and target practice. 3M manufactures a wide variety of products, ranging from personal protective equipment and medical products to adhesives, laminates, and electronics.
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In August, 3M agreed to resolve the legal claim suit for $6 billion—$5 billion in cash and $1 billion in common stock—between 2023 and 2029. This massive payout nevertheless ended up being significantly smaller than the $10 to $15 billion settlement analysts had predicted.
At the time, 3M emphasized that the settlement was “not an admission of liability” and that the company’s products are “safe and effective when used properly.”
The initial round of payments scheduled for the end of January will total approximately $253 million and will be distributed to over 30,000 past and present military personnel. In return, all recipients will forfeit future legal claims against the company. 3M is prepared to defend itself in court if the terms of this agreement are not upheld, the company website stated.
The manufacturing conglomerate also said that the settlement “has received strong and widespread support from claimants and the broader military community” since it was announced.
“We are pleased with 3M’s decision to move up this payment and appreciate its commitment to the resolution of these claims,” said attorney Bryan Aylstock, who is representing the plaintiffs. “So far, support for the settlement has been overwhelming and we expect to meet and indeed exceed the 98 percent participation threshold provided for in the settlement agreement in the coming weeks.”
The earplug litigation against 3M marks the largest mass tort case (a civil liability case over loss or harm) in U.S. history.
3M will record a $4.2 million pre-tax charge in Q3, which “represents the $5.3 billion pre-tax present value of contributions under the agreement net of 3M’s existing accrual of approximately $1.1 billion related to this matter.”
Connor Walcott is a staff writer covering politics, culture, and business for Valuetainment.com. Follow Connor on X (Twitter).
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