A federal judge has barred lawyers and claimants involved in 3M’s $6 billion settlement with members of the US military from any third-party litigation funding agreements.
District Judge M. Casey Rodgers of the US District Court for the Northern District of Florida said in an order late last month that it was “important that [claimants] not exploited by predatory lending practices.”
Rodgers also ordered lawyers to disclose any funding agreements made with the 250,000 or more claimants before or after the settlement was made to settle the multi-district litigation case – one of the largest in US history – of 3M’s Combat Arms Earplug products. The plaintiffs claimed the earplugs were defective and resulted in hearing damage.
The judge’s order was issued August 29. The announcement of the 3M settlement, which the company said was not an admission of liability, was made the same day.
Related: 3M to Pay $6 Billion to Settle Military Earplug Lawsuits
“Settlements of this size and nature often attract the attention of third-party litigation funding entities that seek to prey on litigants, including settlement participants seeking litigation funding while pending receipt of potential settlement funds,” Rodgers said, adding that these arrangements often involve unfairness. fees and interest.
Counsel has 30 days from August 29 to disclose any third-party litigation funding arrangements to the court-appointed settlement administrator, who “has no obligation to negotiate the payment of any third-party litigation or settlement loan.” .”
Legislation on Mergers and Acquisitions Cases
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