#aearo technologies

By Brendan Pierson

August 28, 2023

Aug 28 (Reuters) - 3M (MMM.N) on Monday agreed to pay $6.01 billion to settle nearly 260,000 lawsuits by current and former U.S. military service members who say they suffered hearing loss from using the company's earplugs, according to a person familiar with the agreement.

The deal comes after a failed attempt by 3M earlier this year to move the lawsuits, which had grown into the largest mass tort litigation in U.S. history, into bankruptcy court in the hope of limiting its liability.

The money will be paid out mostly over the next five years, the person familiar with the agreement said.

3M shares had risen 5% on Monday on earlier reports that a settlement was imminent. Some analysts' estimates of the company's potential liability from the earplug litigation had been as high as $10 billion.

A 3M spokesperson and lawyers for the service members did not immediately respond to requests for comment.

The Combat Arms earplugs were made by Aearo Technologies, a company 3M acquired in 2008. They were used by the U.S. military in training and combat from 2003 to 2015, including in Afghanistan and Iraq.

Plaintiffs in the lawsuits claim that the company hid design flaws, fudged test results and failed to provide instructions for the proper use of the earplugs, leading to hearing damage.

The lawsuits were consolidated before U.S. District Judge M. Casey Rodgers in Pensacola, Florida federal court in 2019. At its height, the litigation accounted for about 30% of all federal court cases nationwide.

Of 16 earplug cases that have gone to trial, 3M has lost 10, with about $265 million being awarded in total to 13 plaintiffs.

Aearo filed for bankruptcy in July 2022, with 3M pledging $1 billion to fund its liabilities stemming from the earplug lawsuits.

3M argued that the mass tort litigation was unfair because Rodgers had kept scientific evidence favorable to the company out of trials and allowed thousands of "unvetted" claims to swell the court's docket.

However, a bankruptcy judge in June dismissed the bankruptcy, finding that Aearo was not in enough financial distress to justify it.

Monday's settlement comes just two months after 3M announced a tentative $10.3 billion deal with a host of U.S. public water systems to resolve claims of water pollution by per- and polyfluoroalkyl substances, or PFAS, known as "forever chemicals."

That agreement is not final, and 22 U.S. states and territories are seeking to block it, saying it does not adequately hold the company accountable.

New Post has been published on https://is.gd/vdT7iJ

South Carolina News: COLUMBIA, 3M Company Agrees to Pay $9.1 Million to Resolve Allegations that It Supplied the United States with Defective Dual-Ended Combat Arms Earplugs

COLUMBIA, S.C. – United States Attorney for the District of South Carolina Sherri Lydon, in conjunction with the Civil Division of the United States Department of Justice (DOJ), announced today that the 3M Company (3M), headquartered in St. Paul, Minnesota, has agreed to pay $9.1 million to resolve allegations that it knowingly sold dual-ended combat arms earplugs to the United States military without disclosing defects that hampered the effectiveness of the hearing protection devices.

The settlement announced today resolves allegations that 3M violated the False Claims Act by selling or causing to be sold defective earplugs to the Defense Logistics Agency.  Specifically, the United States alleged that 3M, and its predecessor, Aearo Technologies, Inc., knew that its Combat Arms Earplugs, Version 2, were too short for proper insertion into users’ ears and that the earplugs could loosen imperceptibly and therefore did not perform well for certain individuals.  The United States further alleged that 3M did not disclose this design defect to the military.

“Today’s settlement demonstrates our continuing vigilance to protect the men and women serving in the United States military from defective or fraudulent products,” said Acting Assistant Attorney General Chad A. Readler of the Department’s Civil Division. “Government contractors who seek to profit at the expense of our military will face appropriate consequences.”

“Through rigorous enforcement of the False Claims Act, we protect taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Sherri Lydon. “And in this case in particular, we are proud to defend the integrity of our military programs and ensure that our men and women in uniform are adequately protected as they serve our country.”

“Today’s settlement will ensure that those who do business with the government know that their actions will not go unnoticed,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Properly-made safety equipment, for use by our Soldiers, is vital to our military’s readiness. Our agents will respond robustly to protect the safety of our military.”

“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for supplying substandard products, in particular products that could directly impact our service members’ health and welfare. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affect the wellbeing of our troops,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office.

The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act.  The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. As part of today’s resolution, the whistleblower will receive $1,911,000.

The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice and the United States Attorney’s Office for the District of South Carolina, with support from the Department of Defense.  The settlement was handled by Assistant United States Attorneys Stan Ragsdale and Brook Andrews and DOJ Trial Attorney Brandie Weddle. The case was investigated by Special Agent Jennifer Coleman of the U.S. Army Criminal Investigation Command and Special Agent Gil Rosen of the Defense Criminal Investigative Service.

The case is captioned United States ex rel. Moldex-Metric v. 3M Company, Case No. 3:16-cv-1533-MBS (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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New Post has been published on https://is.gd/vdT7iJ

South Carolina News: COLUMBIA, 3M Company Agrees to Pay $9.1 Million to Resolve Allegations that It Supplied the United States with Defective Dual-Ended Combat Arms Earplugs

COLUMBIA, S.C. – United States Attorney for the District of South Carolina Sherri Lydon, in conjunction with the Civil Division of the United States Department of Justice (DOJ), announced today that the 3M Company (3M), headquartered in St. Paul, Minnesota, has agreed to pay $9.1 million to resolve allegations that it knowingly sold dual-ended combat arms earplugs to the United States military without disclosing defects that hampered the effectiveness of the hearing protection devices.

The settlement announced today resolves allegations that 3M violated the False Claims Act by selling or causing to be sold defective earplugs to the Defense Logistics Agency.  Specifically, the United States alleged that 3M, and its predecessor, Aearo Technologies, Inc., knew that its Combat Arms Earplugs, Version 2, were too short for proper insertion into users’ ears and that the earplugs could loosen imperceptibly and therefore did not perform well for certain individuals.  The United States further alleged that 3M did not disclose this design defect to the military.

“Today’s settlement demonstrates our continuing vigilance to protect the men and women serving in the United States military from defective or fraudulent products,” said Acting Assistant Attorney General Chad A. Readler of the Department’s Civil Division. “Government contractors who seek to profit at the expense of our military will face appropriate consequences.”

“Through rigorous enforcement of the False Claims Act, we protect taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Sherri Lydon. “And in this case in particular, we are proud to defend the integrity of our military programs and ensure that our men and women in uniform are adequately protected as they serve our country.”

“Today’s settlement will ensure that those who do business with the government know that their actions will not go unnoticed,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Properly-made safety equipment, for use by our Soldiers, is vital to our military’s readiness. Our agents will respond robustly to protect the safety of our military.”

“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for supplying substandard products, in particular products that could directly impact our service members’ health and welfare. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affect the wellbeing of our troops,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office.

The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act.  The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. As part of today’s resolution, the whistleblower will receive $1,911,000.

The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice and the United States Attorney’s Office for the District of South Carolina, with support from the Department of Defense.  The settlement was handled by Assistant United States Attorneys Stan Ragsdale and Brook Andrews and DOJ Trial Attorney Brandie Weddle. The case was investigated by Special Agent Jennifer Coleman of the U.S. Army Criminal Investigation Command and Special Agent Gil Rosen of the Defense Criminal Investigative Service.

The case is captioned United States ex rel. Moldex-Metric v. 3M Company, Case No. 3:16-cv-1533-MBS (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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New Post has been published on https://is.gd/vdT7iJ

South Carolina News: COLUMBIA, 3M Company Agrees to Pay $9.1 Million to Resolve Allegations that It Supplied the United States with Defective Dual-Ended Combat Arms Earplugs

COLUMBIA, S.C. – United States Attorney for the District of South Carolina Sherri Lydon, in conjunction with the Civil Division of the United States Department of Justice (DOJ), announced today that the 3M Company (3M), headquartered in St. Paul, Minnesota, has agreed to pay $9.1 million to resolve allegations that it knowingly sold dual-ended combat arms earplugs to the United States military without disclosing defects that hampered the effectiveness of the hearing protection devices.

The settlement announced today resolves allegations that 3M violated the False Claims Act by selling or causing to be sold defective earplugs to the Defense Logistics Agency.  Specifically, the United States alleged that 3M, and its predecessor, Aearo Technologies, Inc., knew that its Combat Arms Earplugs, Version 2, were too short for proper insertion into users’ ears and that the earplugs could loosen imperceptibly and therefore did not perform well for certain individuals.  The United States further alleged that 3M did not disclose this design defect to the military.

“Today’s settlement demonstrates our continuing vigilance to protect the men and women serving in the United States military from defective or fraudulent products,” said Acting Assistant Attorney General Chad A. Readler of the Department’s Civil Division. “Government contractors who seek to profit at the expense of our military will face appropriate consequences.”

“Through rigorous enforcement of the False Claims Act, we protect taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Sherri Lydon. “And in this case in particular, we are proud to defend the integrity of our military programs and ensure that our men and women in uniform are adequately protected as they serve our country.”

“Today’s settlement will ensure that those who do business with the government know that their actions will not go unnoticed,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Properly-made safety equipment, for use by our Soldiers, is vital to our military’s readiness. Our agents will respond robustly to protect the safety of our military.”

“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for supplying substandard products, in particular products that could directly impact our service members’ health and welfare. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affect the wellbeing of our troops,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office.

The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act.  The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. As part of today’s resolution, the whistleblower will receive $1,911,000.

The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice and the United States Attorney’s Office for the District of South Carolina, with support from the Department of Defense.  The settlement was handled by Assistant United States Attorneys Stan Ragsdale and Brook Andrews and DOJ Trial Attorney Brandie Weddle. The case was investigated by Special Agent Jennifer Coleman of the U.S. Army Criminal Investigation Command and Special Agent Gil Rosen of the Defense Criminal Investigative Service.

The case is captioned United States ex rel. Moldex-Metric v. 3M Company, Case No. 3:16-cv-1533-MBS (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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