3M Co. (MMM) announced on Monday that the litigation settlement it reached for selling potentially faulty earplugs to the military is expected to surpass the 98% participation threshold by the final registration date of March 25.
A $1 Billion Cash Payment
As part of the settlement, the company has chosen to pay $1 billion in cash out of the total $6 billion figure, instead of using stock. This decision was made possible once the participation threshold of 98% was met.
Overwhelming Support from Eligible Claimants
“The strong support from over 250,000 eligible claimants who have elected to participate in the settlement and release their claims, along with the dismissal of claims that do not meet participation or litigation requirements as mandated by the MDL Court, is expected to resolve more than 99% of the claims in the litigation by the final registration date,” stated 3M Co.
Allegations of Hearing Loss and Tinnitus
The lawsuits alleged that tens of thousands of individuals suffered from hearing loss and tinnitus after using the 3M earplugs. The plaintiffs’ lawyers made this statement back in August.
Currently, 3M Co.’s stock is slightly higher in premarket trading. However, it has experienced a decline of 17% over the past 12 months, while the S&P 500 has seen a rise of 20%.
