3M has reached a $6 billion settlement that it will have to pay out between 2023 and 2029, putting an end to a lawsuit that they have been involved in since being accused of supplying defective earplugs to the U.S. military. The information was confirmed in a statement published on its official website.
"This agreement, reached through the mediation process that 3M has previously disclosed, is structured to promote participation by claimants and is intended to resolve all claims associated with the Combat Arms Earplug products. The agreement includes all claims in the multi-district litigation in Florida and in the coordinated state court action in Minnesota, as well as potential future claims. The Florida and Minnesota courts are entering orders to support implementation of the agreement," 3M said in the statement.
In addition, the company reminded consumers that this agreement is not an admission of liability. It insists that the products at issue in this litigation were safe and effective when used correctly. The company stated it will take action if the agreed terms are not met.
The company explained that is has the financial means to pay the amount agreed to in the settlement. Company officials will meet with investors to discuss the situation. The company pointed out that "The strength and stability of 3M's business model and strong free cash flow capability, together with proven capital markets access, provide financial flexibility to deploy capital to meet its cash flow needs under this agreement and other commitments and obligations."
