in Indianapolis ruled that Aearo's bankruptcy did not stop earplug lawsuits from proceeding against parent company 3M, which is not bankrupt. 3M is appealing that ruling.
LTL, like Aearo, entered bankruptcy with an agreement that its non-bankrupt parent would fund a settlement of the lawsuits in bankruptcy. Those funding agreements undercut plaintiffs' arguments that 3M and J&J were"hiding assets" from potential creditors, but they also undercut the companies' arguments that they could not afford to fight the lawsuits outside of bankruptcy court.
"Like J&J, 3M is a multi-billion dollar corporate enterprise that is not remotely in financial distress, and therefore should not be able to use the bankruptcy against the servicemembers it injured," plaintiffs' attorneys Bryan Aylstock and Chris Seeger said in a statement.3M said on Friday it would oppose efforts to dismiss the bankruptcy. It has denied liability, saying its earplugs offered protection to soldiers while allowing them to hear on the battlefield.