A bankruptcy judge ruled to allow Kirkland & Ellis LLP to represent 3M Co.’s earplug unit Aearo Technologies LLC in its chapter 11 case, rejecting objections raised by earplug lawsuit claimants and the Justice Department’s bankruptcy watchdog, WSJ Pro reported. Judge Jeffrey Graham shot down concerns over Kirkland’s potential conflict of interest in representing Aearo in its bankruptcy because the law firm also advises parent 3M in its mass earplug cases. Roughly 230,000 claimants sued the company, alleging that 3M earplugs have caused hearing loss. Judge Graham said that he believed the goals for 3M and its bankrupt unit Aearo are aligned at this point because they both aim to resolve valid injury claims. 3M placed Aearo, the earplug manufacturing unit, under chapter 11 protection in July to shift the injury lawsuits to bankruptcy court. The strategy hasn’t worked out as planned so far, as Judge Graham declined to extend Aearo’s litigation shield to 3M, and the mass lawsuits are continuing against 3M in federal court in Pensacola, Fla. During the court hearing, lawyers representing the earplug injury claimants said Kirkland can’t be loyal to Aearo as its bankruptcy counsel because Kirkland lawyers pushed Aearo into chapter 11 for the sole purpose of managing 3M’s litigation risks.
