Aearo and 3M (MMM) Maintain Focus on Resolving Combat Arms Litigation

Certain plaintiffs in the ongoing Combat Arms Earplugs Version 2 (CAEv2) litigation have filed a motion to dismiss Aearo's bankruptcy filing with the U.S. Bankruptcy Court in Indianapolis.

Aearo and 3M intend to continue to engage in mediation discussions toward a global resolution working with all parties, the mediators, and the courts. The motion to dismiss has no immediate impact on these ongoing efforts to resolve the litigation.

Aearo and 3M will remain focused on these discussions and to finding a path forward toward a prompt and complete resolution for all parties while they prepare their written response to the motion and for a future hearing.

The facts and circumstances of Aearo and 3M's efforts to resolve ongoing Combat Arms earplugs litigation are different from those involving the LTL Management case or a "Texas Two-Step" in many important ways, including:

• Aearo is a valid, existing business with more than 40 years of operating history.
  • The bankruptcy court has repeatedly reinforced Aearo's legitimacy, including in its opinion on the Preliminary Injunction.
  • The bankruptcy court expressly stated that the Aearo entities "are appropriate debtors with cognizable liabilities under the Bankruptcy Code" and "are named as defendants in most, if not nearly all, of the Actions."
• Aearo's case is in the Seventh Circuit. The standard for dismissal of a chapter 11 case varies among Circuit courts, as acknowledged by the Third Circuit in its decision.

If the motion to dismiss is granted and upheld on appeal, it would needlessly disrupt the well-established Chapter 11 process to return to protracted litigation in the mass tort system, which after sixteen trials to-date has not provided clarity or certainty. The well-established Chapter 11 process is intended to reduce the cost and time that could otherwise be required for all parties to litigate on a case-by-case basis.

Aearo and 3M will continue to vigorously defend their position regarding this motion, in the multi-district litigation, and in pursuing their appeals. Oral arguments for the appeals of the initial bellwether trials, which include important legal and evidentiary issues, are scheduled to be held during the week of May 1, 2023, and could significantly alter the progression and outcome of this litigation.

3M has great respect for the brave men and women who protect us around the world, and their safety is our priority. We are proud of our commitment to keeping our military safe through the supply of 3M products and we will continue to defend the product at issue in this litigation.

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