Sheppard Mullin's Restructure THIS! podcast explores the latest trends and controversies in Chapter 11 bankruptcy, commercial insolvency and distressed investing. In this week's episode, we welcome Ashley Barriere, partner at Keller Postman LLC, to discuss the 3M Combat Arms Earplug multidistrict litigation and the subsequent Chapter 11 bankruptcy filing by 3M subsidiary Aearo Technologies from the perspective of the plaintiffs she represents: military veterans seeking recovery for injuries related to the earplugs.
What We Discussed in This Episode:
- The 3M Combat Arms Earplug multidistrict litigation (MDL) and what makes it unique
- The jurisdictional tension between the multidistrict litigation overseen by an Article III judge versus the Aero Technologies bankruptcy overseen by an Article I judge
- 3M's attempt to use the government contractor defense in the MDL
- The critical difference between multidistrict litigation and a class action proceeding
- The reaction by plaintiff's attorneys and the judge overseeing the MDL on the day that Aero Technologies filed for Chapter 11
- The reasoning behind the bankruptcy court denial of the debtors' motion to extend the automatic stay to non-debtors, including parent company 3M
- The implications of the U.S. Appeals Court for the Third Circuit's decision on January 30, 2023 to dismiss the bankruptcy case for Johnson & Johnson's subsidiary, LTL, as having been filed in bad faith
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