3M (NYSE:MMM) shares declined as the company was barred by a judge from shifting liability to a subsidiary in a case involving combat earplugs. The case stems from injuries suffered by members of the military who used the allegedly defective earplugs.
The judge overseeing 230,000 lawsuits ruled has full potential liability independent of its Aearo Technologies unit for hearing loss that soldiers blame on allegedly defective earplugs.
As a result, the manufacturer can’t attempt to assign any blame to Aearo, Bloomberg News reported.
3M engaged in “brazen abuse of the litigation process,” Judge M. Casey Rodgers said in imposing a sanction that blocks 3M from contesting its liability as a successor to Aearo, which filed for bankruptcy protection.
The class action suits mostly will be paused if 3M files for an immediate appeal, Rodgers said.
Members of the military claimed that their use of Aearo Combat Arms version 2 earplugs in noisy settings resulted in hearing loss and ringing of the ears.
MMM shares retreated $2.38, or2%, to begin Friday trading at $119.21.