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Bankruptcy Claim By 3M Rejected By United States Court
On the 9th of June a judge of the United States Court of law dismissed a bankruptcy claim. A subsidiary of Aero Technologies, 3M is facing more than 250000 lawsuits filed by veterans of the United States military service.
The company 3M was responsible for providing military grade noise cancelling earplugs.
When faced with this many lawsuits, the company went on to file for bankruptcy. However, Judge Graham of a court in Indianapolis ruled against the claims made by Aearo technologies. The judges stated that the company enjoyed a degree of financial security and therefore the company did not qualify under the clauses of bankruptcy protection.
The 3M lawsuit that was filed last year makes up for one of the largest tort cases in the history of the United States. Initially, 330,000 lawsuits were signed against the company. The company has further stated that the magnitude of the lawsuit is no longer under their control. They have made claims that the situation can only be resolved to bankruptcy. The judge ruling on the case has stated that there was no risk of insolvency seen in the case. He opined that a proper settlement could be reached to fix the current state of affairs.
The judge also said that this litigation procedure against 3M was a large-scale one with a staggering potential. It apparently makes up a whopping 30 percent of all ongoing cases in the country.
Aearo Technologies claims of bankruptcy has been declared to be fatally premature by the court. The court stated that there was no evidence showing that the company was truly and seriously harmed by the ongoing cases.
3M, the Aearo subsidiary, has also been considering filing a lawsuit to appeal the bankruptcy claims. But the main company and its subsidiary are more than prepared to again defend the safety claims made by the noise cancelling earplugs. Both companies have been trying to correct the supposedly flawed outcomes delivered so far by the US Courts of Law. The companies and its legal representatives strongly believe that these appeals courts fundamentally change the path of the lawsuits.
The lawyers representing plaintiffs of the cases have stated that the bankruptcy claims being made by the companies was a misuse of the bankruptcy clause. So far the lawsuits are on hold ever since the ruling about bankruptcy was delivered by the court. Now both 3M and Aearo Technologies await the decision of the 7th Circuit Court of Appeals of the United States.
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