3M To Pay $9.1 Mln To Settle Allegations On Dual-Ended Combat Arms Earplugs

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(RTTNews.com) - The U.S. Department of Justice announced that 3M Company ( MMM ) has agreed to pay $9.1 million to resolve allegations that it knowingly sold the dual-ended Combat Arms Earplugs, Version 2 (CAEv2) to the United States military without disclosing

defects that hampered the effectiveness of the hearing protection device. The settlement announced today resolves allegations that 3M violated the False Claims Act by selling or causing to be sold defective earplugs to the Defense Logistics Agency.

Specifically, the United States alleged that 3M, and its predecessor, Aearo Technologies, Inc., knew the CAEv2 was too short for proper insertion into users' ears and that the earplugs could loosen imperceptibly and therefore did not perform well for certain individuals. The United States further alleged that 3M did not disclose this design defect to the military.

The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. As part of today's resolution, the whistleblower will receive about $1.91 million.

Read the original article on RTTNews (http://www.rttnews.com/2919078/3m-to-pay-9-1-mln-to-settle-allegations-on-dual-ended-combat-arms-earplugs.aspx)

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This article appears in: Stocks
Referenced Symbols: MMM

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