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3M Co. (MMM) Provides Update on Combat Arms Earplugs Settlement

March 26, 2024 6:30 AM

Today, 3M (NYSE: MMM) announced that, as of the final registration date for the Combat Arms Earplug settlement agreement, more than 99% of claimants are participating in the settlement.

Out of a total of more than 293,000 claims, more than 249,000 claimants have registered to participate in the settlement. In addition, more than 41,000 claims have been dismissed by the courts administering the agreements. Once all the settlement registrations that have been submitted by claimants have been processed and validated, 3M anticipates that the settlement will have achieved a more than 99.9% participation level.

Under the terms of the agreement, 3M will pay a total amount of up to $6.0 billion, between 2023 to 2029, to resolve the litigation, provided all participation thresholds are met. This represents a total pre-tax present value of $5.3 billion, for which the company has previously recorded reserves.

Aearo and 3M are actively engaged in insurance recovery activities to offset a portion of the settlement payments. Formal recovery processes are underway through a lawsuit filed in Delaware, as well as arbitration proceedings.

Additional details of the agreement, including the agreed-upon payment schedule, are available at www.3Mearplugsfacts.com and in 3M's filings with the Securities and Exchange Commission.

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