According to Reuters, 3M Co (3M) must face more than 230,000 lawsuits accusing it of selling defective earplugs to the U.S. military after a US judge decided on Friday that the bankruptcy of one of its subsidiaries didn’t stop lawsuits against the company’s non-bankrupt parent.
In a bankruptcy filing, companies are legally relieved of most debts. Aearo Technologies is a subsidiary of 3M and they believe that they should be exempt from debt while they focus on restructuring their company.
Aearo and 3M maintain that bankruptcy is a faster, more fair way to compensate veterans who say that the earplugs made by Aearo caused hearing loss
The judge of the case allowed that Aearo’s bankruptcy restructuring could proceed in parallel with the lawsuits.
It was not necessary for them to use this bankruptcy process to protect themselves from the consolidated litigation.
Attorneys representing veterans with hearing loss said they looked forward to continuing their lawsuits in other courts following their dismissal of the case against 3M in New Jersey.
Lawyers Bryan Aylstock and Christopher Seeger, who represent the plaintiffs, said: “Judge Graham’s decision is a complete rejection of 3M’s attempt to evade accountability and hide in bankruptcy.”
In light of the above mentioned, it is 3M’s intention to appeal.
“Continuing to litigate these cases one-by-one over the next years will not provide certainty or fairness for any party,” 3M spokesman Sean Lynch said
The subsidiary of 3M that created the Combat Arms Earplugs filed for bankruptcy on July 26 following a number of lawsuits claiming its products caused hearing damage.
3M has said that it will continue operating in chapter 11 proceedings and defending its current position in the litigation for as long as it continues to operate.
“3M expects the pending divestiture of its food safety business to close as planned on September 1,” 3M said.
Trials have been consolidate at the Florida court together and has become the largest tort cases in US history.
3M have denied liability, by saying that their earplugs protected soldiers while they were still able to hear while on the battlefield.
A U.S. District Judge has commented negatively on 3M’s attempt to use a bankrupt company as a scapegoat for their earplug problems by saying they were “engaged in naked duplicity”.
3M and Aearo have criticised Rodgers for allowing the consolidated litigation to balloon – earplug cases now account for a whopping 30% of all cases pending in U.S. federal courts
3M has won very few cases of late, with 13 out of the 16 cases that went to trial resulting in a victory for the other side. The company still has $265 million left that it owes.
As of Friday’s close, 3M Corp.’s stock price was down 12% to $129.
Companies are increasingly using bankruptcy proceedings to protect non-bankrupt owner and affiliates from litigation. Johnson & Johnson’s effort to offload lawsuits alleging that its talc-based baby powder caused cancer, for instance, is a recent example of how bankruptcy proceedings can assist in protecting the company.
J&J has denied liability and said its talc-based baby powder is safe. The J&J affiliate’s bankruptcy case is still pending review, after cancer victims appealed a court ruling that blocked their lawsuits against J&J.
Website Design for Law firms: 18 Must-haves to Drive Traffic and Leads
California board pushes to prohibit gas-powered cars by 2035 in favour of electrical
Jay Powell says the Fed will “keep at it” in his hawkish speech about inflation.
11 thoughts on “A bankruptcy for the company does not revoke the lawsuits filed by those using 3M earplugs, which caused hearing loss.”
I want to to thank you for this good read!! I certainly loved every little bit of it. I have you bookmarked to look at new things you postÖ
It抯 laborious to search out educated people on this subject, however you sound like you realize what you抮e talking about! Thanks
Hi my family member! I want to say that this article is amazing, nice written and include almost all important infos. I would like to look extra posts like this .
I really appreciate this post. I have been looking everywhere for this! Thank goodness I found it on Bing. You have made my day! Thx again
Thanks for the thoughts you reveal through this website. In addition, many young women exactly who become pregnant usually do not even try to get health insurance because they are concerned they would not qualify. Although some states now require that insurers provide coverage no matter what about the pre-existing conditions. Rates on these kinds of guaranteed programs are usually higher, but when with the high cost of health care it may be a new safer approach to take to protect your current financial future.
certainly like your web-site but you need to take a look at the spelling on quite a few of your posts. Several of them are rife with spelling problems and I to find it very troublesome to inform the truth however I抣l certainly come again again.
There are actually plenty of particulars like that to take into consideration. That may be a nice point to carry up. I supply the thoughts above as general inspiration but clearly there are questions like the one you carry up the place crucial factor will be working in honest good faith. I don?t know if greatest practices have emerged around issues like that, but I’m certain that your job is clearly recognized as a good game. Both boys and girls really feel the affect of just a second抯 pleasure, for the rest of their lives.
I precisely wanted to thank you so much once again. I’m not certain what I might have accomplished without the type of opinions contributed by you about that theme. It was before a very troublesome matter in my position, nevertheless taking a look at a new specialized technique you processed it forced me to jump over happiness. Now i am happy for the work and even sincerely hope you realize what a great job you are carrying out training many people all through your blog. I’m certain you haven’t got to know any of us.
I have been examinating out some of your articles and it’s pretty good stuff. I will surely bookmark your blog.
I like the valuable information you provide in your articles. I抣l bookmark your blog and check again here frequently. I’m quite certain I抣l learn many new stuff right here! Best of luck for the next!
Somebody necessarily help to make critically posts I would state. That is the very first time I frequented your web page and thus far? I amazed with the research you made to make this particular publish incredible. Fantastic job!