Professor Ralph Brubaker spoke to the Wall Street Journal about 3M Co.’s decision to use bankruptcy to defend itself from mass product-liability lawsuits. The recent filing for Aearo Technologies LLC, a unit of 3M that manufactures military earplugs, enables the company to continue its legal fight with U.S. military veterans who are seeking damages, but in a forum that is more favorable to the company.
Corporate defendants view bankruptcy court as a more hospitable venue to resolve mass-tort liability, “not least because it provides them an opportunity to impose a mandatory no-opt-outs settlement of their aggregate liability on all injured claimants, whether or not they all consent,”said Brubaker.
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