Judges from the U.S. Court of Appeals in Chicago granted 3M Co's (NYSE: MMM) bankrupt subsidiary, Aearo Technologies, a quicker-than-normal process for the review of the bankruptcy-court ruling.
The nod puts more than 230,000 lawsuits accusing the company of harming U.S. soldiers on a faster track to resolution.
The bankruptcy ruling has allowed personal-injury claims against 3M, which didn't seek chapter 11 protection itself, to continue proceeding on behalf of U.S. military veterans who allege the earplugs didn't work as promised.
The claimants blame faulty earplug design for their alleged injuries, while 3M says the earplugs are safe when used correctly.
3M has argued that chapter 11 provides all claimants with an equitable resolution and pays them more quickly and efficiently, Wall Street Journal reported.
While the personal injury lawyers have accused 3M of misusing chapter 11 to escape mass lawsuits, it was losing.
In August, a federal judge questioned 3M's decision to transfer several claims regarding military earplugs to bankruptcy court, noting that a corporate company "voluntarily agreed" to take on those harm responsibilities before filing for Chapter 11.
Price Action: MMM shares are down 4.65% at $108.95 during the premarket session on the last check Friday.
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