Saturday, November 21, 2020 - It has come to light that 3M charged the US military, and American taxpayers by default, $7.63 for one pair of Dual-Sided Combat Army Earplugswhen it only cost the company 85 cents to make them. That is nearly a one thousand percent markup and vastly out of line with what the private sector would be willing to pay for the product. So profitable was the Army Earplug contract that sales to the government of the hearing protection device accounted for 5% of the military division's total income and one-fifth of its operating income for the protective equipment division. 3M's overall earnings have fallen as a result of losing the government's earplug business and other factors and were down 16% overall in 2020 to date. Legal experts think that 3M may have to settle the defective military earplug lawsuits rather than litigate them in large groups at a time and that it could cost the company billions of dollars.
More importantly for the company's financial future is the costs of litigating the thousands of lawsuits against them. The future of the lawsuits against the company was a high court's ruling a few months back that 3M could not hide behind the protections afforded to military contractors. According to the Star Tribune, "A federal judge in Florida has harpooned a key legal defense that 3M planned to use against thousands of lawsuits accusing the company of knowingly making defective earplugs used by U.S. soldiers. Maplewood-based 3M has denied the allegations and invoked the "government contractor defense," which shields contractors from tort liability for defects in products designed and developed for the federal government."
More than two hundred thousand military veterans have filed suit against 3M Inc. for failing to warn them that their hearing protection device was defective and could cause permanent hearing damage and tinnitus. 3M acquired earplug manufacturer Aearo Inc., in order to expand their hearing protection division, and also to leverage their existing military contractor relationships. What they got, however, was an Aearo company whistleblower who contacted the Department of Justice to report that Aearo executives knew the earplugs were defective but hid this information from the government. 3M paid a $9 million fine to settle that matter. Since then, military veterans returning home with hearing loss and tinnitus have hired Army Earplug lawyers and have filed suit against 3M. The Veterans Administration (VA) tells us that hearing damage is the number one reason soldiers have filed for life-long military disability income benefits costing the US taxpayers billions both presently and in the future.
3M is one of, if not the largest supplier of military equipment through guaranteed government contracts and may also be guilty of bilking the US taxpayer by overcharging for the 3M Dual-Sided Combat Army Earplugs.
Everyone remembers the days when it was revealed that the US military was paying $500 for a hammer and $1000 for a toilet seat and the age of holding private industry accountable for overcharging was born.
Our attorneys specialize in holding large corporations accountable when they’ve placed profits ahead of safety. Through settlements and winning verdicts, our attorneys have obtained millions for our clients. Let us help you today.
Filing a lawsuit will allow you to hold 3M accountable for damage it has caused you or a loved one, while also providing real compensation for your medical expenses, suffering and loss. Contact us today for a free consultation.