Local attorneys played key role in litigation over 3M earplugs – Minnesota Lawyer
By now, the world has heard about the blockbuster settlement that 3M announced regarding lawsuits brought against the company for its earplugs. What has been less pronounced in that coverage is how instrumental Minnesota lawyers were in achieving this historic conclusion.
Michael Sacchet
“This historic $6 billion settlement resolves the largest MDL in American history,” said Michael Sacchet, partner at Ciresi Conlin in its mass tort group. “Representing our country’s servicemembers through all phases of this hard-fought litigation against 3M was the highest honor.”
Combat Arms Earplugs were manufactured by Aearo Technologies and used by military between 2003 and 2015. 3M acquired Aearo in 2008. The lawsuits were brought by U.S. military members and veterans who claimed that they suffered hearing loss after using the earplugs.
The plaintiffs claimed that the earplugs had design flaws that the company did not disclose. They also alleged that there were not adequate instructions to use the earplugs and prevent hearing loss. According to the plaintiffs, the earplugs loosened enough to result in hearing loss.
Though the settlement occurred in 2023, the origin of all this started back in 2016. A whistleblower lawsuit against 3M was brought, with allegations that the company knowingly sold defective earplugs to service members.
Sacchet was appointed to help run the case on behalf of 200,000 plaintiffs. Following three bellwether trial wins in 2021, Sacchet was appointed as co-lead trial counsel in Sloan/Wayman v. 3M Co.
He secured the largest consolidated plaintiff verdict in 3M Earplugs Multidistrict Litigation (MDL) in 2022. That verdict was for $110 million. That same year, he secured a $77.5 million verdict — the largest single verdict in MDL. These verdicts were included in the National Law Journal’s Top 100 Verdicts of 2022. Sacchet and Megan Odom, associate at Ciresi Conlin — both recognized as Minnesota Lawyer Attorneys of the Year in 2022 — were involved in these critical cases.
The litigation regarding the earplugs exploded, at once accounting for more than a quarter of federal court cases. It has become the largest single mass tort in U.S. history. 3M has lost several cases that have gone to trial; $265 million was awarded to 13 plaintiffs.
All of the verdicts are being settled through the Master Settlement Agreement but for less than the actual amount of the verdicts, Sacchet noted.
Earlier this year, 3M attempted to move the lawsuits into bankruptcy court. Aearo Technologies, a 3M subsidiary, filed for bankruptcy. However, the bankruptcy was dismissed by a federal judge. The bankruptcy court found that, as a 3M subsidiary, Aearo had more financial security than necessitated bankruptcy protection.
Sacchet surmised that the parties arrived at a settlement because 3M could see the writing on the wall following the large verdicts. “Those types of verdicts sent a message that 3M could not continue to keep trying these cases given the liability that they would face in the future,” Sacchet asserted.
He also pointed to another reason for the settlement. “The government contactor preemption defense was on appeal,” Sacchet said. “In my opinion, we would have won that appeal, and had 3M lost the appeal, they would have been in even more serious trouble moving forward and they didn’t want that to happen, either.”
“The settlement was the better course,” Sacchet said.
Sacchet says that the focus now is to get as many people who are eligible for the settlement to sign on.
“In some ways, there is a lot of work still to be done,” Sacchet said. “For people that represent these servicemembers on an individual basis, they need to make sure that they are participating in the process, complying with the deadlines, submitting the necessary forms, and doing everything timely so that they can effectuate this for everyone’s benefit.”
Close to a quarter of a million people will be eligible for the settlement. At least 98% of those eligible claimants must take part in the settlement or 3M is permitted to walk away from the deal.
“Our wish to achieve a true global settlement is that everyone participates in this settlement process,” emphasized Sacchet.
In a press release, 3M stated that the agreement “was not an admission of liability.” It maintains that the earplugs are safe and effective so long as they are used correctly. “3M is prepared to continue to defend itself in the litigation if certain agreed terms of the settlement agreement are not fulfilled.”
3M will pay $6.01 billion to settle those lawsuits. $1 billion will be in the form of 3M stock. The funds will be paid out between 2023 and 2029.
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