States enter settlement of tire lawsuits

JUNEAU -- Alaska and 52 other jurisdictions have entered into a $51.5-million nationwide settlement of lawsuits they filed this month against Bridgestone/Firestone Inc. regarding allegedly defective tires and misrepresentations the company made during the tire-replacement process and in the promotion of the allegedly defective tires, Alaska Attorney General Bruce Botelho announced recently.

The joint settlement agreement is the result of numerous consumer protection claims involving alleged misrepresentations regarding particular tires that had high rates of separations and alleged misrepresentations made during the company's tire-replacement process.

Among other provisions, the settlement provides restitution in the form of reimbursements and tire replacements, including a procedure to challenge any denial of a consumer's request for a refund, and an injunction prohibiting Bridgestone/Firestone from misrepresenting safety characteristics of its tires and engaging in other deceptive conduct.

Bridgestone/Firestone will also provide detailed safety information when tires are purchased, including information about proper tire maintenance, load capacity, air pressure, proper tire repair and warranty information.

Alaska's share of the settlement will be $526,000. The settlement provides that $26.5 million will be equally divided among the 50 states, District of Columbia, Puerto Rico and the Virgin Islands. About $10 million will go to restitution. This is in addition to $450 million already spent by Bridgestone/Firestone in the 53 jurisdictions.

About $10 million is earmarked to pay costs of the investigation and $5 million will be devoted to a national public service campaign.

The tires included those from three separate tire replacement programs, including the first recall in August 2000; tires in the customer-satisfaction program announced on Sept. 12, 2000; and tires announced during a recall on Oct. 4, 2000.

Under the settlement terms, Bridgestone/Firestone has denied wrongdoing.