Inc. announced Nov. 8 it will pay $41.5 million in a settlement to head off
lawsuits by states and territories over defective tires the company recalled
last year. The company said the settlement is an important step in its efforts
to reach resolutions on recall-related issues, even though it maintains its
opposition to many of the claims.
All 50 states and U.S.
territories in which suits were filed will get $500,000, according to published
reports. In addition, the company will spend $5 million on a consumer education
campaign and $10 million to reimburse attorneys. The settlement could include
another $10 million be paid later to settle future complaints from customers
who failed to receive replacement tires.
announced a recall of 6.5 million ATX, ATX II and Wilderness AT tires in August
2000, after receiving reports that some tires suddenly failed. Many of the
accidents involved rollovers of the Ford Explorer. Since then, federal investigators
reportedly have documented 271 deaths from thousands of accidents involving