Points to remember
- 3M shares jumped on reports that it has tentatively settled lawsuits over accusations of hearing loss from members of the military who used its earplugs.
- The company is expected to pay $5.5 billion to resolve the lawsuit.
- The more than 300,000 claims make it the largest mass tort in US history.
Shares of 3M (MMM) jumped more than 4% in early trading on Monday and were the Dow Jones' best performing stocks after reports that the conglomerate has tentatively settled lawsuits over hearing loss charges . by military personnel who used his earplugs.
3M is expected to pay $5.5 billion to fix the problem. litigation brought by more than 300,000 veterans in the largest mass crime in US history. However, this amount would be much lower than the 10 to 15 billion dollars predicted by some analysts. Negotiations are reportedly continuing and the company's board has yet to vote on the proposal.
The plaintiffs claim that earplugs used by the US military and produced by 3M and Aearo Technologies, a subsidiary acquired in 2008, did not protect them from damage caused by loud noises, such as explosions. 3M claimed that the product worked well when used correctly.
The deal would be the second major settlement by 3M this year. In June, the company agreed to spend more than $10 billion to help municipal water companies fight so-called “permanent chemicals” produced by 3M that are contaminating water supplies.
Despite Monday's gains, 3M shares remained lower for 2023.
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