Veterans File Lawsuit To Block 3M Healthcare Spinoff: Report

Veterans File Lawsuit To Block 3M Healthcare Spinoff: Report
  • Two U.S. military veterans have reportedly sued 3M Co MMM to block the planned spinoff of its healthcare business, calling it an illegal attempt to not compensate veterans for hearing damage caused by the company's military-issue earplugs.
  • The veterans' lawsuits allege that the earplugs failed to protect their hearing in combat or training.
  • Reuters reported that the case is expected to go before U.S. District Judge M. Casey Rodgers, overseeing over 220,000 lawsuits over the earplugs.
  • Related: 3M Plans To Spin-Off Of Health Care Business; Subsidiary Aearo Initiates Bankruptcy Proceedings.
  • "Fortunately, the law does not allow companies to gift their assets to shareholders when doing so leaves them unable to pay their debts," Ashley Keller, a lawyer for the veterans, said.
  • The lawsuit comes after a bankruptcy court in Indianapolis rejected 3M's effort to stop the cases before Rodgers and instead resolve the veterans' claims through the bankruptcy of 3M subsidiary Aearo Technologies LLC, the original maker of the Combat Arms Earplugs version 2.
  • The company has lost 10 of the 16 earplug cases that have gone to trial, with about $265 million being awarded to 13 plaintiffs.
  • Price Action: MMM shares are down 2.62% at $122.34 on the last check Friday.
  • Photo by succo from Pixabay

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