Delaware Supreme Court Denies 3M Insurance Coverage for Earplug Litigation Costs

The Delaware Supreme Court ruled that 3M Co.'s payments for legal defense costs in litigation related to Aearo Technologies LLC’s combat arms earplugs do not trigger insurance coverage obligations. 3M, although the parent company of Aearo, was not a named insured under Aearo's policies; thus, its defense payments exceeding $370 million cannot meet Aearo's self-insured retention requirements. This decision represents a significant development in ongoing multidistrict litigation involving more than 280,000 lawsuits against 3M and Aearo regarding the earplug products.