Tuesday, October 30, 2001
Cooper offers settlement of free replacement tires
The Associated Press
FINDLAY, Ohio Cooper Tire & Rubber Co. offered Monday to settle 32 class-action lawsuits by providing free replacements for tires damaged by manufacturing-related tread separation.
Cooper, which makes 40 million tires a year, said it expects very few claims under the extended warranty.
It is highly unlikely that a tire will separate, but should it separate, we will replace it, said Cooper spokeswoman Patricia J. Brown.
Allan Kanner, a New Orleans lawyer representing plaintiffs against Cooper, endorsed the offer.
Ms. Brown and Mr. Kanner had no estimate on how many tires might be involved. The offer is good for five years.
The offer covers steel-belted radial tires made since 1985 for cars and trucks. It does not extend to separations caused by punctures or road hazards. Cooper's existing warranty offers re placements on a prorated basis based on mileage.
Ms. Brown said manufacturing-related separations would be evident to dealers. The company will help dealers decide the issue of responsibility if needed, she said.
Cooper, based in this northwest Ohio community, has more than 20,000 employees and 55 plants in 13 countries. Its tires are sold under the Cooper brand and private brands sold by Sears, Pep Boys and others.
No cash payments will be involved, and there was never any claim of personal injury, Cooper said in a statement. Cooper will deny any wrongdoing or legal liability under the agreement.
Mr. Kanner said he expects a decision early next year from Superior Court Judge Marina Corodemus in New Brunswick, N.J., whether to approve the deal. The lawsuits involve nearly 50 named plaintiffs.
Cooper said it would take a $55 million pretax charge to cover the cost of the extended warranty and related programs.
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