Firestone Settles First Trial
August 24, 2001
Firestone announced today that it had settled a lawsuit involving a tread separation on a Ford Explorer SUV. The Rodriguez family of Texas sued the tire maker after their Explorer rolled over on a Mexican highway. The family sought $1 billion in damages from Firestone. Ford agreed to a settlement of its portion of liability prior to the trial.
The settlement announcement comes four days into jury deliberations in the first Firestone tread separation case to reach the trial stage. Terms of the agreement indicate that the Rodriguez family will receive $7.5 million in compensation from Firestone. Firestone has exhausted the company's liability insurance coverage and has been forced to set aside an additional $1.1 billion in reserves in order to cover the cost associated with the hundreds of lawsuits filed to date.
-- Article Courtesy of InjuryBoard.com
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