3M’s board approved a $6 billion settlement to resolve claims that its earplugs caused hearing loss among veterans, putting a long-awaited price tag on a large chunk of the company’s legal troubles, the Wall Street Journal reported. The settlement is substantially less than the $10 billion to $15 billion some analysts expected. 3M shares climbed on Monday after news of the initial settlement terms was reported over the weekend. 3M said that it would pay $5 billion in cash and $1 billion in stock between 2023 and 2029 to settle the allegations. The company will book a pretax charge of $4.2 billion in the third quarter. 3M said it is seeking insurance recovery to offset some of the settlement payments. Aearo, a company 3M bought in 2008, is suing its insurance carriers related to the litigation. Veterans allege that 3M and Aearo Technologies, a company 3M acquired in 2008, produced faulty earplugs that failed to protect their hearing from noise damage after they were issued by the U.S. military. 3M has said the earplugs work correctly when used with proper training. The earplug litigation has become the largest single mass tort in U.S. history, with more claims than any one company has faced for earlier mass litigation including asbestos exposure, opioid sales or wildfires. (Subscription required.)
