3M subsidiary Aearo Technologies files for bankruptcy as it seeks to resolve Combat Arms Earplugs litigation
3M Co. MMM,
said on Tuesday that its subsidiary Aearo Technologies and related entities have voluntarily filed for bankruptcy, to help establish a 3M-funded trust to resolve claims related to Combat Arms Earplugs Version 2. The consumer, industrial and personal care products company Health said it and its other businesses had not filed for bankruptcy and will continue to operate as usual, while Aearo will also continue to operate in the normal course. The bankruptcy of Aearo, acquired by 3M in 2008, comes as 3M takes steps to resolve the Combat Arms earplug litigation, which stems from allegations of fraudulent misrepresentation and concealment. 3M said it believes that without action on Tuesday, “claims could take years, if not decades, to litigate on a case-by-case basis.” With this shift in strategy, this process is intended to resolve combat arms claims. Earplugs in a more efficient and fair way for all parties.” Shares of 3M, which also reported second-quarter results and announced plans to spin off its healthcare business, gained 1 .5% in premarket trading, while ES00 futures,
for the S&P 500 SPX,
down 0.5%.