Shares in industrial giant 3M (MMM) were weaker today after British soldiers launched legal action against it after suffering hearing loss on duty in Afghanistan.
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Ear Protection
As reported by the BBC, thousands of British military personnel claim that the ear protection they were given was faulty and led to life-changing injuries such as deafness.
It relates to the supply of lightweight combat earplugs from 3M to the U.K.’s Ministry of Defence for use while training and on active service between 2003 and 2015.
3M’s combat arms earplugs (version 2) were designed to be reversible with one side blocking out most sounds and the other protecting against impact sounds such as explosions while letting in spoken commands and other quieter noises.
One soldier said she used the earplugs while serving in the British Army and has been left with hearing loss on one side and tinnitus, which she describes as a “horrific whining or pulsing that just won’t go away.”
Soldier’s Letter
A letter before action has been sent to 3M on behalf of over 2,000 veterans and current military personnel.
“As yet, there’s been no justice and no compensation for British servicemen and women,” says Tom Longstaff, a partner at KP Law, which is bringing the case.
“We’ve got very strong evidence that this product was defective, [and] that it suffered from a design flaw, which is well-documented in some of the cases that have already proceeded in the US.”
In 2023, 3M agreed to pay out $6bn to settle similar claims from 240,000 US servicemen and women.
3M said that was not an admission of liability.
A spokesman for 3M said the company had “great respect” for the British Armed Forces and it took the allegations concerning the product seriously. “3M is prepared to defend itself in any litigation threatened in the English courts,” it said.
This is why litigation and regulatory issues are such key risks for an industrial company like 3M – see above. It is also something investors need to consider before buying stock.
Is MMM a Good Stock to Buy Now?
On TipRanks ,MMM has a Moderate Buy consensus based on 5 Buy, 3 Hold and 2 Sell ratings. Its highest price target is $184. MMM stock’s consensus price target is $157.56, implying a 2.78% upside.
