3M Unit Goes Bankrupt in Bid to Corral Earplug Lawsuits (1)

3M Co. put its Aearo Technologies unit into bankruptcy in a bid to resolve more than 230,000 lawsuits brought mainly by US military veterans over allegedly faulty combat earplugs.

The conglomerate has already spent nearly $350 million defending the sprawling litigation, according to court papers. Putting the unit into bankruptcy is the fastest and most equitable way to resolve the claims, 3M said.

The case is the latest in a string of so-called mass tort bankruptcies, in which profitable companies use insolvency proceedings to settle onerous legal liabilities. Lawsuits against a bankrupt company are paused as soon as ...