(Reuters) — A 3M subsidiary appealed the dismissal of its bankruptcy case late on Monday, challenging a judge’s ruling that it was not in immediate danger from 260,000 lawsuits alleging 3M military earplugs caused hearing loss to veterans and U.S. service members.
US Bankruptcy Judge Jeffrey Graham in Indianapolis had dismissed Aearo Technologies’ bankruptcy on Friday, finding it “fatally premature”. Despite the “staggering” number of earplug lawsuits, Aearo has significant financial backing from 3M and enjoys a “greater degree of financial security than warrants bankruptcy protection,” Judge Graham determined.
The lawsuits, which have been consolidated in federal court in Pensacola, Florida, are the largest mass tort action in U.S. history, with nearly 330,000 cases filed and about 260,000 pending, according to May court statistics.
3M and Aearo had argued that the earplug litigation had gotten out of hand and could only be resolved in bankruptcy. 3M did not immediately respond to a request for comment on Aearo̵
7;s appeal.3M has said the earplugs are safe and effective and denies allegations that they caused hearing loss. It has previously said it was prepared to fight the earplug lawsuits outside of bankruptcy through appeals that could correct the “wrong outcome” in some of the trials that have gone ahead so far. 3M has lost 10 of the 16 ear plug cases that have gone to trial so far, totaling about $265 million to 13 plaintiffs.
The case is Aero Technologies LLCUS Bankruptcy Court for the Southern District of Indiana.
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