The encyclopedia · Legal & Compliance · Legal decision · 1999-2023
3M sold the military earplugs it knew fit too loosely — $6B to settle it
Combat Arms earplugs could imperceptibly loosen and let noise through; 3M sold them to the US military anyway and paid $6B to over 260,000 veterans.
3M · Aearo Technologies · 2023-08-29
What happened
3M's Aearo Technologies unit made Combat Arms earplugs, sold to the US military from 1999 to 2015 to protect service members' hearing while still letting them hear commands. Veterans alleged the earplugs' stem was too short to seat properly, letting them loosen imperceptibly and let damaging noise through during use.
Hundreds of thousands of veterans sued, forming what became one of the largest multidistrict litigations in US history. 3M tried routing the liability into an Aearo bankruptcy filing to cap its exposure; that maneuver was rejected by the courts, sending the case back to trial and settlement talks.
On August 29, 2023, 3M agreed to pay $6 billion — $5 billion in cash and $1 billion in stock, paid out from 2023 through 2029 — to resolve claims from over 260,000 claimants, without admitting the earplugs were defective.
Why it happened
- Combat Arms earplugs allegedly loosened imperceptibly in the ear, letting through the noise they were sold to block.
- 3M's attempt to cap liability by pushing the claims into subsidiary Aearo's bankruptcy was rejected by the courts.
- The $6B settlement — over 260,000 claimants — is among the largest product-liability payouts in US history.
- 3M settled without admitting the product was defective, calling it safe and effective when used properly.
The lesson
A liability large enough to threaten the balance sheet doesn't shrink by routing it through a subsidiary's bankruptcy — courts will look past the structure to who actually made and sold the product.
Aftermath
3M booked a roughly $4.2B pre-tax charge in Q3 2023 for the settlement. By mid-2026, claimants had received over $3B of the $6B total.
Sources
- 3M Announces Combat Arms Settlement — 3M Investor Relations
- Official Combat Arms Earplugs (CAE) Settlement Program
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