A settlement has been reached to resolve False Claims Act allegations against 3M Company.
The allegations arose from a lawsuit that claimed 3M Company knowingly sold the dual-ended Combat Arms Earplugs, Version 2 (CAEv2) to the United States military without disclosing defects that hampered the effectiveness of the hearing protection device.
According to the government, allegedly 3M Company and its predecessor, Aearo Technologies Inc, knew the CAEv2 was too short for proper insertion into users’ ears and that the earplugs could loosen imperceptibly and therefore did not perform well for certain individuals. In addition, allegedly 3M Company did not disclose this design defect to the military.
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for supplying substandard products, in particular products that could directly impact our service members’ health and welfare. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affect the wellbeing of our troops,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office.
Reportedly, the settlement resolves allegations that 3M Company violated the False Claims Act by selling or causing to be sold defective earplugs to the Defense Logistics Agency.
The whistleblower lawsuit was brought by a 3M competitor, Moldex-Metric Inc in May 2016 under the False Claims Act. As part of the settlement, Moldex-Metric will receive $1.9 million.