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ARTICLE · 05 DECEMBER 2023

3M $6 Billion Settlement Precludes Texas Two-Step Appeal

Maron Marvel Bradley Anderson & Tardy
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The deal represents $5 billion in cash and $ 1 billion in 3M common stock over the course of 2023-2029.

United StatesInsolvency/Bankruptcy/Re-Structuring
Zachary R. Wasserstein
Zachary R. Wasserstein
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On August 29th, 2023, 3M announced a wide-ranging $6 billion settlement reached with plaintiffs' counsel meant to resolve pending and future litigation related to Combat Arms Earplugs produced by its subsidiary Aearo Technologies. The deal represents $5 billion in cash and $ 1 billion in 3M common stock over the course of 2023-2029. The currently pending multi-district litigation in Florida regarding Combat Arms Earplugs has grown to staggering levels, representing over 250,000 active individual actions and roughly 30% of all pending litigation in federal district courts. This development comes just one day after the Court of Appeals for the Seventh Circuit announced that it had accepted the appeal of 3M and Aearo to dismissal of Aearo's Chapter 11 Bankruptcy filing in the Southern District of Indiana. As part of its litigation strategy, 3M was attempting to spin off Aearo in a maneuver commonly referred to as the "Texas Two-Step," wherein two new entities are

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